What a Debt Management Program Covers
Like many other forms of debt consolidation, a DMP can only be used for unsecured debts, which are debts that you haven’t put up collateral for. That’s because creditors have no reason to accept less for your debt than if you just sold the collateral to pay them back. If most of your debts are secured, then a DMP may not help you much. However, if most of your debts are unsecured, then a DMP might be the solution you need.
How a Debt Management Program Works
The first step to entering a DMP is to contact us. When you first give us a call, send us an email, or chat with us online, a member of our in-house team will ask about your situation and see how we can help you. Ask about our DMP and we’ll be happy to book you a confidential appointment, where you’ll meet a licensed credit counsellor in-person or by phone at a time that’s convenient for you.
In the appointment, your credit counsellor will review your financial situation with you to see if a DMP is right for you. If it is and you agree to enter the program, the counsellor and their support team will negotiate with your creditors to combine all of your unsecured debt payments into one monthly payment.
This monthly payment will be tailored to what you can afford based on your budget, with the interest rate often greatly reduced or turned to 0. You’ll make the monthly payment to us and we’ll split it up and disburse it to each of your creditors.
The average person completes a DMP in about 3 years, but you’ll have 5 if needed. Once your DMP is complete, you’ll officially be debt free. However, you’ll also continue to have our support if you need it, including a credit rebuilding program that can help you get approved for new loans like a mortgage as quickly as possible. Finally, all records of the DMP and debts paid off through it will be erased from your credit report 2 years after you complete it. That means you can get on with your life without worrying about future employers or others drudging up a past that you took care of and fully dealt with.
It changed my life
When I came to the Credit Counselling Society three years ago I was terrified to answer my phone, my job was in jeopardy because creditors were calling me at work, and I avoided checking my mailbox for fear of the horrors that might await me there. CCS was able to negotiate with my creditors and relieve the immediate stress. Having all of my debt payments rolled into one manageable payment changed my life. CCS has helped me to turn my life around.
Directly from our clients, read and hear about their experiences with CCS.
Our counsellors are friendly, professional, and among the highest qualified in our industry.
Are you curious about what credit counselling is or how it works? Here’s what you need to know.