 TITLE: A Debt Management Plan: Is It Right for You? CONTENT: What Are the Disadvantages of a Debt Management Plan?\n-----------------------------------------------------\nThere are also potential drawbacks to getting on a DMP rather than a different type of debt consolidation or repayment program.\n*   **It won't include every debt.** DMPs generally won't include your secured debts and some types of unsecured loans, such as student loans. Counselors may be able to offer guidance, but you'll generally need to manage those payments on your own.\n*   **There are fees.** You may need to pay an initial setup fee (such as $30 to $50) and a monthly fee (often ranging from $20 to $75) to participate in a DMP. The amounts can vary depending on the counseling agency and state laws, and your financial situation may qualify you for waivers or accommodations.\n*   **Less access to credit.** You'll have to close any credit cards that you include in the DMP, which will diminish your access to credit throughout the month. Your creditors may also monitor your credit reports and require you to stop using credit cards that aren't part of the DMP while you're participating in the program.\nDuring the initial counseling session, the counselor can help you review your financial situation and determine which options are best. Sometimes, a debt consolidation loan or balance transfer credit card might make more sense. If your situation is severe, it might warrant bankruptcy to clear away overwhelming debts and get you on a more manageable repayment plan. END