Debt management programs – also referred to as DMP – have helped many people take back control of their finances. Certified credit counselors determine if you’re a good fit for the DMP, then negotiate lower interest rates with your creditors to boost your repayment strategy.
Watch the video to learn more about Debt Management Programs, then test your knowledge at the end of the lesson.
A debt management program (DMP) provides professional assistance to set up a repayment plan for your existing debts, but you need an excellent credit score to qualify.
A. True
B. False
Which of the following is not one of the steps in a DMP?
A. Call a credit counseling agency
B. Work with a certified credit counselor
C. Sign over rights to your collateral
D. Determine your monthly payment
During DMP enrollment, you’ll generally pay off your debt in:
A. 90 fixed monthly payments or less
B. 80 fixed monthly payments or less
C. 70 fixed monthly payments or less
D. 60 fixed monthly payments or less
If you haven’t done so already, complete the Credit Card Debt Worksheet to get an accurate picture of your balances.