It's Friday night and you just sat down to watch your favorite show. A few moments later a commercial comes on. That's right, another credit counseling agency promising to lower your interest rates and stop collection calls. If you're cynical or what others consider to be a skeptic, you will get up and deem this as an opportunity to grab a drink before your show resumes. However, if your values oblige you toward proper money management, you will grab a piece of paper and a pen and quickly jot down that phone number.



Free call. Free Analysis. Why not? Grab a drink during the next commercial.

What's all the hype about anyway? Well its all about "credit card debt" in a nutshell. Most of us have it and truth is, we all want to get rid of it. Lets face it, credit cards can be a GREAT thing, especially when you're cruising around the mall window-shopping. A few moments later you realize you have this piece of plastic in your pocket and now you can make that "special" purchase. You may think twice, but in the end you will reward yourself. Nothing makes us feel better than buying new things. Unfortunately, if you are not budgeting properly, you will dread the day that credit card bill arrives in the mail, and nothing will make you feel worse.

So how do you know you are a good candidate for enrolling in a Debt Management Plan? Well, if you are experiencing any of the following examples, you may need to make that DMP call sooner then you think.

-You pay only the minimum (or even worse you pay less then the minimum) on your credit card and think to yourself, as long as you send "something" that's good enough.

-You use your credit card to buy things like food, gasoline, cigarettes, or beer.

-Your balances are going up and those over limit fees and late fees no longer surprise you.

-You have more credit cards then a successful gambler has poker chips.

-You're signing up for every credit card offer in the mail.

-Your credit cards are no longer used for the sake of convenience but rather because you just don't have any money.

-You're hiding your purchases from your spouse.

-You change your home phone number in hopes the collection calls will disappear.

-You have reached the limit on most of your credit cards and now youve developed a significant amount of stress.

-You're considering bankruptcy as an alternate way of "getting out" of debt.

-You use cash advances on one credit card to pay another credit card.

If you are experiencing any of these symptoms, then your best cure may be a Debt Management Plan. It may be easy getting into debt, but it does not have to be hard getting out of it, if you do it the right way. If you don't take control of your debt and you fall behind on payments, it will impact your credit report, or even worse, your livelihood.

A DMP is a far better alternative than bankruptcy to get out of debt and a better alternative than a debt consolidation loan or debt settlement. A DMP basically takes all your unsecured debts, and combines them into one monthly payment. However, it is not a loan. Instead of you sending out multiple payments for your credit card bills, you'll send your credit counseling agency one payment. They in turn disperse it to your individual creditors. If you enroll in a DMP through a 501(c) (3) not-for-profit agency, the fees to start the program should not exceed seventy-five dollars and maybe a lot less then that depending on the state you live in. Either way, it's a small price to pay considering the amount of money you'll save in the long run. In this case you will have saved money while nobly paying off the entire debt you owe without (a) risking the loss of your home if you are unable to make the monthly payment on a consolidation equity loan and (b) damaging your credit and paying income taxes on the amount of debt not paid on a debt settlement plan. Once enrolled in a DMP, a certified credit counselor contacts your creditors and negotiates a lower payment on your behalf. Even better, they will get them to lower the interest rates, cease collection calls, re-age and report your account as "current" and waive or suspend past due fees and over-limit. Sounds good, right? Well remember, these benefits provide you with the opportunity to afford the payments and get them "paid off in full." Depending on your balance and interest rates, your repayment time can take anywhere between 1 to 5 years. Now, thats a deal! Considering the fact that without a DMP, you may face a repayment time of 8-15 years. Believe it or not, even more then that if you make the minimum required payments each month.

Once you successfully complete the program, the rewards are even better. You have rebuilt a better payment history and you are debt free. So, the next time someone asks you what is a Debt Management Plan and why should I have one, smile at them, better yet, give them a smirk and pass along this article.