Debt Management FAQs - Part 1
What exactly is a Debt Management Plan? A debt management plan, usually just referred to as a “DMP,” is a partnership between you and CCCS of Buffalo to systematically pay down your outstanding debt through monthly payments. You would make one monthly payment directly to us, and we then disburse those funds out to your creditors each month. On a plan, you can include any unsecured debt – so credit cards, personal loans, medical bills, or collection accounts. Why is a DMP something I’d want to participate in? Well, there are several benefits to doing so! First, we work with your creditors to get you a lower interest rate. Depending on the creditor and the type of debt, interest rates are typically reduced to around 0-10%. We work with the creditors to make an arrangement for them to accept a lower monthly minimum payment from you, which ultimately puts more money back into your pockets on a monthly basis. Once enrolled into a DMP, creditors typically stop charging lat