Posted on June 9, 2009 at 2:15 am Many companies worked Debt Management Plan so,How do I know whether a Debt Management Plan is right for me?Anybody can give some comments? 

Posted on June 9, 2009 at 3:41 am Hi, it depends on your financial situation. You have to first calculate how much you owe per credit card, car loan, etc. so that when you check with the National Foundation for Credit Counseling (NFCC), or one of its affiliates, (CCCS) or Consumer Credit Counseling Services, for consultation, you'd be ready to answer their questions. You may also want to try and fill out one of those forms, for free consultation, and try debt settlement instead.

Posted on June 9, 2009 at 4:13 am A debt management plan may be right for you depending on a credit counselor's assessment on your financial situation. Credit counseling organizations offer these programs only to consumers who are that hard-up on their debts. Typically these agencies first enroll their clients on counseling sessions with specially trained counselors who can address their individual financial concerns. It is ultimately up to the counselor whether to enroll you on a program or not.

Posted on June 9, 2009 at 7:53 am The main objective of a debt management plan (DMP) is to lower the interest rates of the debtor's credit cards so they can pay off the accounts faster. DMPs usually last 5 years, where the client makes monthly payments to the credit counseling agency they enrolled with, who in turn disperses the funds to each of the client's creditors. In the meantime, the credit counselor working on the client's behalf is negotiating the interes rates in attempt to have them lowered. The benefits of a DMP are one simple monthly payment as opposed to many, as well as the potential to get lower interest rates locked in on your cards. However, a lot of creditors do not work with credit counseling agencies, and as a result a lot of people find themselves paying a monthly fee to the agency with little to show for it. Furthermore, these plans last 5 years. If you miss any payments at all, these agencies reserve the right to kick you out of the program as a lot of them are actually owned and funded (and must give kickbacks to them) by the creditors and therefore must cater to their desires. So essentially you could find yourself making payments for 2 years, all of a sudden can no longer afford the payments, and end up right back where you started. So, DMPs are typically successful for people who have a lot of disposable income, a low debt amount but high interest rates. For these individuals, the risk of missing a payment is very low, and with a low debt amount paying off the cards within a 5 year time frame is more realistic than someone who owes a lot or has trouble affording the monthly payments to their creditors. What is your situation specifically?