Is a Free Debt Management Plan Right For Me?
What is a free debt management plan? A Debt Management Plan (DPM) is a formal agreement between you and your lender’s, where you agree to pay your unsecured debts through more affordable monthly payments than you currently owe. Your creditors will also agree to temporarily freeze late fees and interest, giving you the peace of mind that your debts aren’t increasing. This plan is usually arranged by your lender in cooperation with your financial advisor. If your financial situation needs to be reviewed, your advisor or the company that arranged the DMP can help you get a free debt management plan.
Why would you qualify for free debt management plans? To be eligible for free debt management plans, you must meet certain income guidelines set by your creditors. You must also be current on all of your bills, loans, and other financial obligations. You must be able to demonstrate an ability to make your monthly payments each month without any complications. Some creditors will also give you more time to achieve success in meeting your obligations.
How do you get started with a free debt management plan? Your first step is to contact your provider like us. Our consultants will review your current financial situation and help you determine how your current circumstances can work to your advantage. If you have a high level of unsecured debt, you may qualify for a lower interest rate. Or, if you meet certain requirements such as having paid off an existing loan or being unemployed, you may be eligible to have some or all of your monthly payments waived.
What kind of free debt management plan can I get? Most creditors offer at least one free debt management plan, usually through a credit counseling company. However, there are some creditors who are willing to help you in refinancing your debt at no cost to you. Some providers will also help you in setting up a budget and repayment agreement. Your financial situation and unique circumstances will be taken into consideration when discussing these options.
How do I pay my debts with a free debt management plan? When you contact our service, you will fill out a paper application detailing your income and monthly expenses. Your creditors will then send you a form to sign if you agree to the terms. Your creditors are not responsible for your payments or making sure you meet your obligations. Your payments will go to the free debt solution you established and agreed upon with your counselor.
What kind of free debt management plan are there? There are several different payment options available to you. The most common plan is the standard payment plan in which you make one monthly payment towards a loan that is held by the creditors. You can choose to make extra payments towards your principle or towards the total outstanding on your debt. In many cases, your creditors will waive the fees and penalties for early or missed payments and other charges if you follow the terms of the agreement.
Can I choose my own provider? Many free debt management plans have an assigned financial advisor or counsellor that you can work with. They are typically based in your local area so you can meet face to face with them. You can meet with your assigned advisor at the same time each month to stay on track with your payments.
How does a free debt solution help me? During the process of establishing your agreement, you will take an honest and thorough look at your current financial situation. We will look at how much you earn, your monthly expenses and any assets or bank accounts you currently own. We will explore your options for repaying debts and finding affordable repayment arrangements. Through your discussions with your advisors, we will develop a plan that best fits your needs and aspirations. Through diligent repayment and careful management, you can gradually get out of debt and build a strong financial future.