Reduce Interest Rates
When consumers are approved for DMP (debt management plan) creditors may reduce or eliminate interest rates. DMP benefits are offered directly by the creditor grantor thru approved credit counseling agencies.
Lower Monthly Payment
When consumers are approved for DMP creditors may lower the over-all monthly payment requirement. DMP benefits are offered directly by the creditor grantor thru approved credit counseling agencies.
Reduce Collection Calls
When consumers are approved for DMP most creditors will stop collection calls provided payments are being made on-time thru the program. Different creditors have criteria for when they stop calling. Please consult your credit counselor for specific creditor details.
Re-aging Credit Reports
This is defined by the Federal Reserve as "returning a delinquent open-ended account to current status without collecting the total of principal interest or fees that are contractually due" When consumers are approved for DMP creditors may re-age delinquent accounts after the third consecutive on-time payment in the DMP.
Stop Late & Over-limit Fees
When consumers are approved for DMP most creditors will stop charging late or over-limit fees provided payments are being made on time thru the program. Different creditors have criteria for when they will no longer charge late or over-limit fee. Please consult your credit counselor for specific creditor details.
