 TITLE: A Debt Management Plan: Is It Right for You? CONTENT: What Are the Benefits of a Debt Management Plan?\n------------------------------------------------\nBorrowers who are struggling with their bills may find a DMP offers a sense of relief and a practical solution. Particularly if you're feeling overwhelmed or you're making monthly payments and the balance never seems to decrease, a DMP can put you on a path to paying off your debts.\nThe main benefits of working with a counselor and getting on a DMP include:\n*   **Professional advice**: You'll start with a financial counseling session where a counselor will go over your budget, debts, goals and options to help you determine the best course of action. Even if you don't go with a DMP, you may find this initial (often free) session helpful.\n*   **Waived fees and lower payments**: The counselor can work with your creditors to waive previously charged fees and lower your monthly payments, helping you pay down your debts more quickly and freeing up room in your budget for other necessary expenses.\n*   **Debt deleted sooner**: The counselor may also be able to negotiate lower interest rates on your debts, which means a larger portion of your payment goes toward the principal balance, and you'll be out of debt sooner.\n*   **One monthly payment**: You receive one monthly statement and send one monthly payment to the counseling agency. It can be much easier to manage than juggling bills from multiple creditors.\n*   **Accounts brought current**: If you've fallen behind on payments, you might not be able to afford to pay your entire past-due balance—even if you can afford the monthly payment. As part of a DMP, your creditors may agree to \"re-age\" your account and update the account status to current, saving you on late fees, after you make several on-time payments through the DMP.\n*   **Fewer calls**: If you're able to include past-due accounts or collection accounts in your DMP, the creditors and collection agencies should stop calling. But it can take several months for calls to stop, as it takes time for all the paperwork and processing to get worked out.\n*   **A plan with accountability**: You could stick to making minimum payments on credit cards and be stuck with the debt for years. But with a DMP, you'll have a plan for paying off the debt and a credit counselor who will keep you accountable.\nYour credit counselor may be able to offer support or referrals to help you manage other aspects of your finances. For example, some agencies offer budgeting, homebuying, student loan and bankruptcy workshops, and have trained counselors who can help you navigate all these situations or goals. END