A Must-Do List for Debt Management Plans
Are you on a debt management plan and have no idea what the dos and don’ts are? Keep reading for a detailed analysis on what to do and what not to do when you are following a debt management program.
Role of the Debt Management Plan
A debt management plan (DMP) can help you make timely debt payments. With more and more people falling into the trap of debt, debt management agencies are having a hard time keeping up with the high demand. Of late, instances of debt agencies duping consumers have also been on the rise. However, if you follow certain guidelines, then a DMP can be a true companion throughout your entire debt pay off phase.
Check with Regulatory Agencies
Before opting for any debt management plan, you should gain a thorough understanding about companies offering the service. Here are some agencies with whom you should verify a debt service company’s history:
- Business Bureaus
- Federal Trade Commission
- State Attorneys General’s Office
- Consumer Protection Agency
If there are any complaints registered against a debt management service provider with any of these agencies, it could be a matter of concern.
Ask for Details About the DMP’s Service Plan
Companies offer various types of debt management solutions, so it is good to have a clear understanding about what is included in the debt management plan. You can ask for a written document outlining the clauses. Carefully read the clauses related to monthly payoff structure, the plan for creditors’ legal action and others related issues.
Read Your Debt Management Monthly Statements
It’s not enough just to enlist a DMP; you need to follow it seriously. Ask the debt management solution provider for a monthly statement. This statement will give you a clear picture of whether your creditors are being paid regularly. If for any reason any scheduled payment was missed, bring the matter to the attention of your debt planners immediately.
Be Prepared for Uncertainty
A debt management plan can be like a ray of hope for those who are in debt. But have you ever wondered what would happen if the company managing your debt were to go out of business? If something like this should happen, there is no need to worry. Typically customers are notified and their plans are transferred to another company. Once you receive a notice like this, you need to stop your DMP payment automatic withdrawals. You can resume your payoff by paying creditors’ directly. Also verify your credit report thoroughly to confirm no delayed or missed payments are present.
Processing your request, Please wait....
