Debt management must-do list
It has been observed that a number of credit counseling organizations involved in debt management cheat consumers in various ways. They furnish false information about the nature, cost and benefits of the services they provide, and some of them also keep consumers in the dark about their non-profit status. They demand high fees, or try to extract money from consumers in the garb of ‘voluntary’ donations. In a debt management plan (DMP), the agency uses the money deposited to them by you to pay your various loans and debts in accordance with a payment schedule they’ve fixed after talking to you and your creditors. So if you have a debt management plan (DMP) with an agency, you must check out certain things.What you must do
If you have a DMP, confirm first with your creditors if they have agreed to the plan before sending any money to your agency handling your case. If you understand that they have accepted the plan, you must keep on making regular payments on time. Go through your monthly statements carefully to find out if your creditors are receiving the payments as planned. Get in touch with your DMP handler if you won’t be able to make a payment as per schedule, or you notice that your creditors are yet to receive their payments. Keep it in mind that your creditors will not be lenient towards you if you are enrolled in a DMP.If for any reason the agency looking after your DMP closes down, you should immediately ask your bank to stop payment if you were paying through automatic withdrawal, or start paying directly to your creditors. You should also inform your creditors that your DMP handling agency is closing shop. You may negotiate a payment plan with your creditors yourself. You must also ask for a copy of your credit report to check for late or missed payments, which may happen due to the closing down of your company. Remember that in case of late payments made by your DMP handler, it is you who will suffer.