What is Debt Management?
Debt management plans, or DMPs, are designed for consumers who cannot repay their unsecured debt under normal conditions. The most common benefit of a DMP is the consolidation of multiple monthly payments into a single monthly payment, which may result in a lower monthly total. A DMP can also aid the process of bringing delinquent accounts current, which is referred to as “re-aging.” This happens after a client has made a series of on-time payments.
During a credit counseling session, individual financial circumstances are assessed to determine the appropriate solution. Our certified credit counselors will work with creditors to reduce interest rates, eliminate late fees and develop manageable repayment plans. The consumer simply makes one monthly payment, and TCA will disburse payments to multiple creditors and/or service providers.
At Take Charge America, we also provide DMP clients with educational tools and resources to help them gain control of their finances, pay off existing debt and save for the future.