If you’re facing unmanageable credit card debt, a Clearpoint debt management program (also called a “debt management plan” or DMP) might be the answer.
A debt management program is a plan in which a credit counseling agency works with a consumer to repay their debt to multiple creditors with a single, comfortable monthly payment. A DMP helps you pay off your debt in a way that is convenient, safe, and brings you great benefits such as:
Many of our counseling clients come to us with five or more high-interest credit cards and are struggling to make their minimum payments. If you’re in a similar situation, a Clearpoint debt management program may be right for you.
Consumers interested in a debt management program will first consult a Clearpoint counselor in a free, basic credit counseling session, which is offered online, via phone, or in person. Your counselor will review your total financial situation and discuss your credit report, income and expenses, and FICO score with you. You and your counselor will then take inventory of your outstanding debts and creditors, and your counselor will explain how a DMP may work for your specific situation, including how your interest rates and monthly payments may change on the program.
Once you’ve decided to sign up for a debt management program, Clearpoint requests better terms for you from each of your creditors. Throughout our 50+ years of advising consumers, we’ve established relationships with thousands of creditors. This helps us anticipate their unique requirements and seek better terms on your behalf.
After your program is up and running, you’ll make a single monthly payment to Clearpoint and we’ll distribute those funds to your creditors on your behalf. Along the way, our counselors will be available should you have any questions or difficulties or find yourself in need of additional counseling.
Our relationship with your creditors enables us to offer many benefits to you, such as lower interest rates and waived fees. Here are the main benefits a debt management program offers, but keep in mind that each client’s situation is unique and the details of each program may vary.
You can read more about the benefits of a DMP here.
If you’re considering credit counseling or think you may benefit from a debt management program, there are many reasons to consider working with Clearpoint.
Our counselors work tirelessly on your behalf, but a debt management program is collaborative and there are a few guidelines you’ll need to follow to ensure that your program is successful.
No. Debt settlement and bill consolidation have risks and costs associated with them that DMPs do not. Read more about the differences here.
Gradual repayment of your unsecured debt through a debt management program will usually help your credit score in the long-term. Read about how it works here.
Read our debt management FAQ for answers to many others questions, including those about program fees, estimated payoff timelines, and eligibility for new credit.
To see if a debt management program is right for you, get started with a free credit counseling session. During the session, your credit counselor will offer guidance to help you determine your best debt repayment option—be it a DMP or other method of debt repayment. Here are ways to get started:
The great thing about Clearpoint is that their debt management program allowed me to consolidate the payments of 9 different credit cards into one single payment… They were the ones that contacted all the credit card companies and got the lowest APR possible. And they were very supportive too—there was never any judgment about what had happened or anything like that. They were just there to help, completely on board with me as a part of my team.
Here are links to a few additional resources related to debt management programs.
Learn more about the benefits of a DMP, including why interest rates are lower, why payoff times are shorter and when you can expect the collection calls to stop.
Read all of our most frequently asked questions and learn about program fees, estimated payoff timelines, and how a DMP affects credit.
We cover the differences between debt management programs and “debt consolidation” programs and explain why DMPs are safer and more beneficial.
Read about how a FICO score is calculated, how a DMP affects the score over time, and why our successful DMP clients improve their score by an average of 106 points.
Call us at 877.877.1995 and we’ll be glad to help.