Things You'll Need:
- Your personal information including your name, address, and social security number
- Know your monthly income (after taxes)
- Know your credit card accounts and account numbers
- Know your monthly expenses (rent or mortgage, gas, utilities, groceries, cable tv)
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Step 1
The best debt management agency I have found (and personally use) is In Charge Financial Services (InCharge.org). Go to their website and take the (free, no obligation) debt and stress analysis. The analysis will give you an in debt look at the stress you have revolving your credit card debt. You can then see whether or not you need to participate in the debt management program (DMP).
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Step 2
Now, once you've gotten a good idea of your stress level and how it relates to your debt, go ahead and take the next step by enrolling in the DMP. The best thing about In Charge is that you don't have to drag out all of your credit statements, enter your account numbers, and try to figure out what your account balances are... In Charge does a credit check on the spot (for free!) and lists all of your current credit accounts, account numbers, and account balances! Hassle-free!
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Step 3
Now that you've enrolled in the program you can view your debt, enter information about your monthly bills such as rent, utilities, gas, groceries, phone bill, cable service, etc. All of this information (along with your income) is used to create a budget. Review your budget in detail and make sure there are no mistakes.
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Step 4
Review your DMP and all of the neat charts and graphs In Charge provides you with. Also take note and print all of the information about your plan such as your monthly payment, the accounts enrolled in DMP (some accounts may not be eligible), and all other important details. The best way to participate in the DMP is to enroll in bank draft payments so you do not have to worry with getting your DMP payment in on time. So, after you've reviewed, printed, and enrolled your bank account... You're DONE! Yes, DONE!
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Step 5
In Charge will contact all of your credit card companies for you, and the only thing you'll need to do is contact the companies and have your due dates changed to 20 days AFTER your scheduled DMP payment, CANCEL all recurring charges and/or memberships billed to the account, CANCEL all credit life or credit insurance programs. Please note, some companies will automatically adjust your payment date and cancel all recurring charges to your account as well as insurance. In Charge (or the DMP of your choice) will haggle with the credit card companies to lower your interest rates, negotiate a cease-fire with credit card fees like late fees and over the limit fees, and reach an agreement with the companies for a repayment schedule. You don't have to do anything, nothing, zip, zero, nada!
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Step 6
Watch your mailbox! You'll receive notification from In Charge each time a credit card company has enrolled in your DMP (KEEP THESES!). You'll receive letters from your credit card companies giving you information about the DMP and changes to your customer agreement like changes in your interest rate and other benefits of the DMP (KEEP THESE!). About four weeks after you enroll with In Charge you'll receive a welcome kit which includes a binder for you to place all of your statements from enrollment data to future statements from creditors.
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Step 7
Now, you're all set to becoming debt free...how does it feel? In Charge has a one-time setup fee of $50 (due at first DMP payment). There IS a monthly fee which will be a % of your debt up to a certain amount or you'll be charged a flat fee (about $30) which is INCLUDED in your DMP payment. You make ONE payment to In Charge and THEY pay all of your creditors. You can make additional payments to In Charge or directly to your creditors to reduce your balances. Be sure to check out the WARNINGS below!
