A Debt Management Plan (DMP) is an informal agreement that allows you to lower your monthly debt repayments to an amount that is more affordable for your circumstances. Your monthly debt management payment is determined by analyzing your income, expenses and financial priorities and seeing what money you have left over to pay to your creditors each month.
This debt payoff tool puts you on a path to pay off your debts by combining several debts into one monthly payment with a reduced interest rate. A financial counselor will meet with you to discuss your circumstance and arrange repayment to each of your creditors. The counselor will try to reorganize your debt, so it’s cost effective and more affordable. This type of debt relief often requires that you pay the entire amount owed. Having to pay back your entire balance owed usually requires higher monthly payments limiting your total monthly payment relief. Another downside to DMP is missing a payment can derail the plan and end your interest rate cuts causing you to have to restart your program from the beginning.
VS – DEBT SETTLEMENT OPTION
With the option of debt settlement, your debt settlement company negotiates with the lender to agree upon a settlement balance often less than what is owed, to repay the debt. This form of relief is less harmful to your credit score than bankruptcy and can offer some immediate relief from financial pressure drastically lowering your monthly payments.
Which debt relief option is best for you? For many, the answer is debt settlement. But is that the best option for relieving credit card debt? It’s important to review all your options and make the best decision based on your financial reality. Getting a Free Debt Analysis of your financial situation is important in understand which option might be best for you.
National Financial Relief is one of the most dependable debt settlement companies in the nation. We are made up of smart, compassionate and energetic people who genuinely want to help you get out of debt.
Clients who are able to stay with the program and get all their debt settled realize approximate savings of 50% before fees, or 30% including our fees, over 24 to 48 months. All claims are based on enrolled debts. Not all debts are eligible for enrollment. Not all clients complete our program for various reasons, including their ability to save sufficient funds. Estimates based on prior results, which will vary based on specific circumstances. We do not guarantee that your debts will be lowered by a specific amount or percentage or that you will be debt-free within a specific period. We do not assume consumer debt, make monthly payments to creditors or provide tax, bankruptcy, accounting or legal advice or credit repair services. Not available in all states. Please contact a tax professional to discuss tax consequences of settlement. Please consult with a bankruptcy attorney for more information on bankruptcy. Read and understand all program materials prior to enrollment, including potential adverse impact on credit rating.
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See how much you can save every month — with your personalized plan from National Financial Relief.
See how much you can save every month — with your personalized plan from National Financial Relief.
