Debt Management Plan: How to Get Help in Illinois

Debt management plan in Illinois: What is it?

Being in debt can be overwhelming at times. Take heart because you are not alone! Many residents in Illinois are going through the same stress and uncertainty brought by their financial struggles. Is there a possible solution? Debt Management Plan (DMP)!

What is a DMP?

A Debt Management Plan is designed to help you devise a plan to repay your unsecured debts – credit cards, personal loans, and medical bills. This is a loan but a structure to help you manage your debts.  How does it work? Here are the simple facts:

1. Single monthly payment. A DMP allows you to make a single monthly payment to your credit counseling agency. What they will do after your payment is to disburse your payment to your different creditors. You only need to focus on one repayment date and one amount, eliminating missed payments and the stress of juggling between dates and amounts.
2. Lesser interest rates. Your credit counseling agency will be responsible for negotiating lesser interest rates with your creditors. In time, you will see the savings you benefit from the reduced interest repayment.
3. Debt payoff plan. Your credit counseling agency personalizes your debt payoff plan based on your financial capability. They will look at your income vs. expenses and debt balances to know how much the monthly repayment will be based on your ability to pay.

Why Choose a DMP in Illinois?

A DMP will help you manage your finances better in the future. You’ll receive the financial education you need and help you develop a better plan for budgeting and taking care of your money. Even if you try to manage debt on your own, you can. But creditors trust you more if you have a DMP because it will show them your commitment to repaying your obligations. They may even hold off charging you with late fees and other charges.