DEBT MANAGEMENT PLAN (DMP)
if you living expenses and creditor payment cost more than you earn, a Debt
Management Plan of DMP might be the right choice for you. Our counselors are
ready to help you restore you credit and save you money. CU Mortgage's
Credit Counseling Solutions is first step toward debt relief.
How does DMP work?
One monthly payment is made to CU
Mortgage. We then distribute this
payment to all creditors on the DMP.
Many creditors will reduce the interest
rates, stop late payments, and
over-limit fees once you are on a DMP.
Is there a fee for this service?
Our budget counseling is free. A $35 fee is utilized to start the program
and then there is monthly fee based on the size of your DMP payment, up to a
maximum of $50 per month. The benefits of the DMP far outweigh the costs of
being on the plan.
How will my credit rating be affected?
The policies for reporting the participation in a DMP to the bureaus
vary according to the creditor. Fair Isaac and Company have gone on record
to say that they will not deduct any points from you score for being on a
DMP. The FICO credit score is one that many lenders use. In the future, a
DMP can actually help your chances of getting credit because your debts will
have been repaid in full.
How do I get started?
First, you need to schedule a credit counseling appointment with one of
our certified counselors. They can give you a quote on the DMP based on your
creditors and debt. Our counselors will be glad to answer any questions you
may have about a DMP.
Our financial counselors can help you to understand the size and nature
of your debt, help you develop a budget, and create a plan to help reduce
your debt.
If you choose to use a DMP as an option, our certified counselors can go
over the program benefits:
Collection calls will cease
Interest rates will be reduced
Late and over-limit fees will be eliminated
You will have one affordable monthly payment
Foreclosure, repossession, legal action, and shut-offs will be prevented
We will arm you with the skills and knowledge needed to make sound
financial decisions
When your interest rate is lowered and fees are eliminated, more of your
payment can go towards reducing your account balances. CU Mortgage will work
on your behalf so that your debt situation is less stressful. Our certified
counselors can negotiate the payment rates and terms with your creditors.
When you make a payment to CU Mortgage, we will then send it to your
creditors based on the terms we negotiated for you. Our guidance is
available whenever you have a question. We offer our services by phone or
you can come in to our office location. Call us directly at 1-800-123-4567
to determine if a DMP is the right choice for you. The initial consultation
is free.
How will the Debt Management Plan affect my credit report? g on
your situation and the creditors involved, the impact on your credit report
can be positive or negative. CU Mortgage will not report any information to
the bureaus. Information is reported to them by your creditors only. The
manner in which they do so varies greatly from creditor to creditor. We
believe that by putting the focus on your financial situation and taking a
long-term approach you will find that your credit report will improve over
time. Paying your bills on time is one of the most important factors that
contribute to a good credit score. Late payments are always viewed
negatively by lenders and will remain on your credit report for 7 years.