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A debtmanagement plan (DMP) is an agreement between a debtor (that’s you, the person in debt) and a creditor (think: your bank or your credit card company) that tackles your outstanding debt. If you’re feeling buried under the weight of multiple debts, a DMP might be the solution to escape the crush.
After years of sparse regulation and oversight that allowed a few unscrupulous companies to unlawfully take money from consumers without helping them achieve debt relief, Congress provided the necessary consumer protections to regulate the debt relief industry. What is the difference between debt settlement and a debtmanagement plan
Negotiate with your creditors to reach settlements and reduce your total debt. Help you come up with a 24- to 48-month debt repayment plan tailored to your budget. In keeping with Federal Trade Commission rules , Freedom Debt Relief doesn’t charge upfront fees. Who Is Freedom Debt Relief Best For? Ads by Money.
One example of a credit counseling agency is Consolidated Credit Solutions , a non-profit organization that provides financial counseling and debt relief services. Credit counselors often recommend debtmanagement programs (DMPs). A DMP provider can reach out to lenders and negotiate interest rate reductions for your debts.
It’s important to research thoroughly before enrolling in a debt settlement program, according to the Federal Trade Commission. “Do Despite criticisms of these schemes, there are trustworthy companies out there that successfully settle debts for their customers. About National Debt Relief. Other secured debts.
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