What to expect on Debt Management Program

What to expect when you are on a debt management program is different for different creditors. However, for most decent creditors, here is what you can expect.

Once the debt management program has you money for the month, they are ready to disburse to your creditors all at once. That means, some payments will be late and some will be early. For any that are late, you may incur late fees. If you don't want any late fees, you can pay out of pocket to the creditors that would otherwise charge you late fees. You usually only need to do this for the first month or so until everything is in place.

Will creditors keep calling me?

Some creditors will keep calling you during the first 3 months into your debt management program. Some creditors have legitimate reasons to call and some are giving courtesy calls to try to save you from having to pay hefty fees as a result of late payments or if your first payment from the debt management program is too small for the amount due. However, there are creditors who will call you because they refuse to work with credit debt management counseling programs.

What if the creditors refuse to work with the debt management program I sign up?

When you get calls from creditors, tell them that you are a client of the debt management program you are in and refer them to that program. Bear in mind that sometimes creditors are unreasonable and will try the scare tactics to scare you into paying them in full or keeping the high interest rates. If the creditors refuse to accept the proposals offered by the debt management program, you need to notify the debt management program counselor immediately. Whoever calls you, make sure you get their name and number.

What if I get collection notices, legal correspondence from the creditors?

Some creditors will keep contacting you about your debts. Some will send collection notices. Some will send legal notices and correspondence. When you receive any of this, make sure you forward all of them to the debt management program. Any account changes, creditor information changes will also need to be forwarded to the debt management program.

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