Brian J., Columbus, GA
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Home » Debt Help » Debt Management vs. Debt Settlement »
Debt Management
Reliable with few side affects!
What is a debt management program?
According to our "medicine" analogy used before, a debt management program (DMP), such as GFM provides, would be the equivalent of an over-the-counter medication. It is the least intrusive way of eliminating your debt and has few side effects.
Basically, a DMP provides an efficient way to pay down your outstanding debt under the best terms available. You make one monthly payment to a credit counseling agency, such as GFM, which will then distribute funds to your creditors. In return for making consistent, on-time payments through a reputable debt management company, your creditors will provide many benefits, including significantly reduced interest rates, eliminating costly late and over-the-limit fees, and even re-aging the account to current status. As your creditors accept your proposal on the DMP, any collection calls you have been receiving will taper off, and eventually (usually within 45-90 days) completely stop.
Because debt management does not actually reduce how much you owe the creditor, and instead primarily utilizes a reduction in the interest rates to speed up your debt elimination, it does not directly affect your credit. While some creditors may choose to notate on your file that you are participating in a credit counseling program, this is a neutral notation and will not change your credit score. Even better, when you successfully complete the program, GFM will provide you with a letter to send to the credit agencies that will remove any DMP-related notations.
