In comparison, consolidating debt through a credit counseling agency’s DMP comes with far less strict qualifications.
Anyone whose situation does not qualify them for bankruptcy alone or who can realistically afford a monthly payment can take advantage of a DMP.
Begin making monthly payments to each including one larger payment to the highest priority account.
Be sure and verify monthly remaining balances with your creditors and write in these new balances wherever you are tracking progress.
Credit Counseling Agencies may provide the best route because they offer the most holistic approach.
Credit card debt is most commonly addressed through debt consolidation.
This solution ends up taking longer than other options.
Because this type of debt consolidation requires a loan, it may only be an option for those that can qualify for borrowing.
There’s no guarantee of approval or that if approved, the amount will be large enough to cover all outstanding balances the client possesses.
If you can secure a loan, you may be looking at a high-interest rate and longer repayment term.
Prior to beginning repayment, a credit counseling agency (CCA) will negotiate with creditors to reduce interest rates and settle on manageable monthly payments.
Once these are set, all payments are totaled and this amount is withdrawn from a client’s personal bank account as one single monthly payment.