If you’re facing unmanageable credit card debt, a debt management program might be the answer.
A debt management program (also called a debt management plan or DMP) helps you pay off your debt to multiple creditors with a single, comfortable monthly payment. A DMP through a nonprofit agency like Clearpoint is convenient, safe, and brings you great benefits like:
- Lower interest rates
- No more collection calls
- Peace of mind
Struggling to make your minimum payments? Wondering how you’ll possibly pay down all of your debt? A Clearpoint debt management program may be right for you.
How It Works
If it sounds like a DMP might benefit you, watch the video below or read on to find out more about how it works.
1. Work with a Clearpoint Counselor
If you’re interested in a debt management program, you’ll first consult a Clearpoint certified credit 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 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.
2. Clearpoint Works with Your Creditors
Once you’ve decided to sign up for a DMP, 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.
3. Make a Single Monthly Payment to Clearpoint
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.
Benefits of a Debt Management Program
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.
- One monthly payment
- Lower interest rates
- Shortened payoff time
- Waived late and over-limit fees
- No more collection calls
- Improved credit score over time
- Alternative to bankruptcy
- Help from a certified counselor
- Reduced stress
- Become debt free
You can read more about the benefits of a DMP here.
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.
Why Choose Clearpoint?
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. We are:
- Nonprofit. You can trust us to provide objective advice and services that benefit you, the consumer.
- Education focused. Since your financial well-being is our top priority, our counseling model rests on teaching you how to manage your money and providing you with solutions to your individual financial situation.
- Fully certified. The National Foundation for Credit Counseling (NFCC) is the largest, longest serving and most well-respected credit counseling network in the country. All Clearpoint counselors must be NFCC-certified, which means they have studied counseling principles, understand consumer rights and responsibilities, and have passed examinations showing their proficiency in these and other areas.
- BBB accredited. We’re a system-wide accredited business of the Better Business Bureau with an A+ rating.
Other Frequently Asked Questions
What’s expected of me while on a debt management program?
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.
Is a DMP the same thing as debt settlement or bill consolidation?
No. Debt settlement and bill consolidation have risks and costs associated with them that DMPs do not. Read more about the differences here.
Will a DMP hurt my credit score?
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 other 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:
Here are a few additional resources and links to more information about our 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.