Best and Quickest Ways to Destroy Credit Card Debt

A Debt Management Program (DMP) is a great way to pay off credit card debt. It provides consumers an easy way to pay off debts and reduce financial stress by combining the benefits of lower interest rates and lower monthly payments.

A DMP is similar to debt consolidation in that it combines multiple debts from multiple creditors into one payment at a reduced interest rate. Debt consolidation, however, requires new financing such as a debt consolidation loan.

Credit counseling agencies that offer DMP’s like DebtWave do the work for you and contact your various creditors to set up a single repayment plan that works with your budget. Our DMP typically has you completely debt-free within three to five years. In some cases, plans may extend beyond five years.

DMPs are not loans.

At DebtWave, we work with creditors on your behalf to reduce your monthly payment, interest rates, and work to waive or reduce any penalties. By significantly reducing interest rates, much more of your money goes toward paying off the debt instead of crippling finance charges. In 2023, our average customer's interest rate prior to the DMP was 22.61 percent. This is slightly above the average. After enrolling onto our DMP, their average interest rate dropped to 7.41 percent.

Most of our clients are looking to reduce their monthly payment when inquiring about credit card debt relief. The monthly payment is determined by your balances, the credit card company's guidelines, and your budget. In 2023, our average customer's monthly payment prior to the DMP was $854. After enrolling onto our Debt Management Program, their average monthly payment dropped to $661.

Though similar in name, a debt management program is not the same thing as a debt settlement program. A Debt Settlement program requires consumers to be months or even years behind on payments so your creditors are willing to settle for a percentage of the debt you owe.

With debt settlement, consumers pay a percentage of what is owed to their creditors, but this often results in a negative impact to your credit score. Consumers on a DMP will pay back everything they owe to their creditors, so the credit score impact is usually neutral if not positive over time.

Enrolling in a DMP can be a positive thing for your credit because it helps consumers with debt improve the two biggest factors used to calculate credit scores: credit history and credit utilization. There is potential to weaken your credit score if you don’t continue to make payments while our credit counselors negotiate with your creditors; but as long as you continue to make minimum payments until the program starts, enrolling in a DMP should have a neutral impact on your credit score.

Since DMP’s are typically offered by consumer credit counseling agencies that are 501(c)3 nonprofit organizations, the cost of the DMP is relatively less than other debt solutions like debt settlement. When enrolling in DebtWave’s DMP, clients can expect to pay an initial setup fee and monthly service fee. Fees vary by state. So please contact one of our financial counselors to find out how much it costs for you personally to enroll in our DMP.

Schedule An Appointment