Entering A Debt Management Program And What You Need To Ask


by E.S. Cromwell - Date: 2008-05-26 - Word Count: 604 Share This!

Debt consolidation services are everywhere and whether these services are in-house or online based, they're undeniably around every corner or just one click away. And they need to be, especially with the surplus of financially wounded, stressed and needy individuals spread throughout the world. Thus, these services have extended their helping hands, and quite plentifully. You would think such an extension is a positive thing, right? Well, sort of.

Too Much of a Good Thing?

At the same time, there is something else, a thing most significant to factor in - this readily available accessibility to these financial options are offers that are more detrimental than they are beneficial. This is so not because these services are crooked, but simply because such fixing financial options are in an overabundance and as such, a forced process to weed out the good from the bad and subsequently become overly selective has been put into place for those researching healing financial servicers.

As such, there are definite possibilities to both get mended and fooled in the realm of financial services. And if you're reading this it's likely you're amongst the many whom are actually in financial hardship seeking mending through such aforementioned options.

You Must Take Heed & Pay Mind Toward The Need To Inquire

There's no doubt that it's high time you take the bettering motion and walk through that debt consolidation company door, or click that debt consolidation servicer link. For once you do, the trip to financial healing can finally begin. Yet, before doing this you should take heed as well as know to inquire within and toward your service and/or company of interest, especially if you're interested in what's called a Debt Management Program.

Usher In The Debt Management Program

Through a debt consolidation agency you will be provided with a Debt Management Agreement (DMA) before any negotiating occurs with creditors. What's needed on your end is a willingness to analyze and focus your attention to the details. Review the DMA and then prepare some questions, first in your head, then transposing them onto paper to refer to later on. And don't be weary of writing many or intricate questions as it will be crucial for you to ask specific questions before committing yourself to signing a DMA.

Of the questions you should be asking, start off with charging concerns. Ask if there is a fee to enroll into the debt management program. Particularly, inquire about how much the program is overall, how the payments are structured (if they're paid separately or tallied to the monthly payment amounts), when payments are due and how those payments are calculated.

For Purposes of Certainty and Clarity...

Ask these questions and compare them to standardized and reputable DMA procedures. What's standard and what are good procedures, you might ask? Well, know that typical sign up fees are not too expensive - expect to pay no more than $100 for signing up and having that said sign up fee added to your first monthly payment. In terms of monthly fees, how they're calculated is based on either by (1) the number of accounts you have under a DMA or (2) by percentages of total debt amounts within a DMA. Calculating monthly fees here is completely based on varying company procedures and client (being you) circumstances.

Also, inquire about repayment terms, particularly monthly amounts and final payment dates. As it should work out, your monthly payment should be less (between 30% and 50 %) than what you were paying on your debts before entering a DMA. Concerning final payments, they should be satisfied in 5 years time, if of course the repayment plan is based on a 5 year structuring.

Related Tags: debt consolidation, credit counseling, debt management program, debt counseling, debt negotiation, credit card counseling, credit card relief

So now, if you're committing yourself to a debt management program you know exactly what to do - be cautious, be selective, but most importantly, ask the questions that need to be asked. Do this to ensure you're healing financial pursuit is in fact going to fix you up rather than make your financial situation worse.

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