Is a debt management program a good idea?
A Debt Management Program can be a fantastic idea if you meet the following criteria:
- Have a large amount of credit card debt ($10K or higher)
- Have interest rates higher than 18%
- Most of your cards are near, at or over the credit limit
- Make only the minimum payment
- Struggle to stick to a monthly budget
What are the negatives of a debt management plan?
- Your accounts are closed and you can’t use the cards enrolled on the program.
- Credit Counseling agencies charge monthly fees
- Combining all your payments into one monthly debit may be burdensome to your budget depending on your payroll schedule
What happens if my creditor rejects a DMP?
In many cases, the initial rejection of a debt management program by a creditor is fixable. Some of the most common reasons of a creditor rejecting the initial proposal are:
- Creditor wants a higher payment
- Name or SSN on account doesn't match
- Invalid account number
- Account hasn't been opened long enough
- Account is already on a hardship plan
DebtWave has an 85% proposal acceptance rate. The 15% of accounts that get rejected can typically get resolved by sending another proposal.