Generally, you can negotiate the best settlement on a debt if you can come up with a lump sum amount to resolve the debt.
If you agree to a payment plan, you will likely pay more over time.
If you do agree to a payment plan, make sure you understand the total amount you will pay.
Are Debt Management Programs a good idea?
Debt management plans are usually most beneficial to people who are deeply in debt but who still feel able to avoid the significantly worse impact of bankruptcy. For some, a debt consolidation loan may be a better option. A qualified credit counselor can help you decide if a DMP is right for you.
Can I cancel my debt management plan?
Cancelling your debt management plan. A debt management plan (DMP) isn’t legally binding, so you can cancel it if you feel it isn’t working for you. However, you may not get a refund of your fees and you’ll need to make sure you have another way of dealing with your debts.
How long do debt management plans last?
Debt Management Plans Vary in length
DMPs can vary in length significantly, but tend to be in the region of five to ten years. If you think that clearing your debts would take longer than this, with reduced monthly payments, a DMP might not be the best solution for you.
Can I get a credit card while on a debt management plan?
Any credit card that is included in your DMP is required to be closed. Keep in mind – the agency administering your debt management plan will not (and cannot) close your credit cards. If you don’t close the accounts on your own, your creditor will once the account has been accepted onto the DMP.