Need help with your debt? You are not alone.

If you are struggling each month to pay your bills, and you don’t seem to be making any progress, maybe it’s time to consider getting some help. A Debt Management Plan (DMP) is a great option if you need professional advice. The goal of any DMP is to help you decrease your debt and allow you to take back your financial future.

A DMP can help with your unsecured debt. Unsecured debt is debt that is not secured by an underlying asset or lien. Examples of unsecured debt are credit cards, personal loans, and attorney or medical bills. A DMP will take all of your unsecured debt and combine it into one affordable monthly payment. It is not a debt consolidation loan though and unlike debt settlement services, there are no upfront fees. A credit counseling agency will provide you with practical budget counseling services and work with you and your creditors to build a budget you can live with. A DMP will help you pay off your debt and improve your credit rating. An agency that offers DMP’s can offer helpful suggestions and assist you with:

• lower interest rates
• lower payments
• reduction or removal of late or over limit fees
• relief from collection calls and letters

Regardless of your specific need, choosing a good credit counselor is extremely important. Some organizations, including some nonprofit credit counseling agencies, may be more interested in their bottom line than in helping their clients. A 2005 Senate committee, though, lauded the National Foundation for Credit Counseling (NFCC) for its commitment to ethical credit counseling that is provided at low or even no cost to consumers. The NFCC has member agencies all over the US including RethinkingDebt.org. There are some important criteria to keep in mind when choosing an agency to work with.

• Find out if the agency belongs to a national organization such as the NFCC to ensure it meets quality and ethical standards.
• Ask the Better Business Bureau and other third parties about the agency.
• Watch out for large upfront or monthly fees.
• Be skeptical of Big promises.
• Make sure the agency will work with all your creditors.
• Be wary of “fly by night” agencies. Make sure the agency you choose has many years of experience.

Keep in mind that a DMP is not a “quick fix”. No one can get rid of your debt overnight. A DMP will get you back on track though and improve your finances for the future. You must be committed though. A credit counseling agency can help you lower payments but you still have to be disciplined to make those payments and not incur any further debt while you are on the DMP. Your patience and hard work will be rewarded with a brighter financial future!