Frequently Asked Questions: Debt Management Plans
I am making my payments okay, but would like the interest rates reduced so I can get the cards paid off sooner. Is the Debt Management Program the answer for me?
If you are meeting your household financial obligations without falling behind and making your credit payments in full and on time, the Debt Management Program may not be an option for you. A counselor will work with you to develop a spending plan then review creditors to see if the Debt Management Plan would be beneficial to you based on your overall financial picture.
What is a Debt Management Program?
A Debt Management Program (DMP) is a formal agreement between you and CCCS® that we will serve as an intermediary between you and your creditors. You would agree to make a monthly payment to CCCS that would then be disbursed to your creditors. The DMP is established for a period no longer than 5 years and is based upon affordability and creditors' requirements.
ClearPoint’s fee for the debt management plan is the lesser of $40 per month or the amount permitted by state law. The fee for New York residents is $40 per month.
How can a DMP help me?
The DMP may help if you have fallen behind in payments, or just can't seem to make the minimum required. Many of your creditors will agree to certain concessions, such as reducing interest and stopping late and/or over-limit fees, or bringing your account current. A reduction in interest or fees will usually allow you to pay more toward principal and get out of debt much sooner than if you handled your debt on your own. To see how much you can save over the term of your debt management plan, ask your credit counselor to run a comparison chart.
Why do creditors participate in the DMP?
Creditors participate voluntarily because of our credentials. We are non-profit, licensed and accredited, and have long-standing relationships with creditors. Because of this, creditors know that you worked with a certified, professional counselor to develop your DMP and that you have committed to repaying your debts. They have confidence that you want to avoid bankruptcy and pay your accounts in full.
How will joining a Debt Management Plan affect my credit?
CCCS does not report your participation in a DMP to any credit reporting agency. However, some creditors may state in your account history that you are with a credit counseling program, or similar notation. This notation will alert potential lenders that you are managing your debts through a DMP. The fact that you’ve joined a debt management plan will not affect your credit score if you make your DMP payments regularly and on time and help preserve your credit.
See more on the DMP and credit scores as well as other Frequently Asked Questions.
When is my CCCS payment due?
Your payment is due on a date that was established by you and your counselor. Whatever that date is, you must be sure to make your payment on the same day each month—not early or late. Creditors require a payment every 30 days.
Current or first-time DebtPlus users click here to access your account securely.
When are my creditors notified of my DMP?
Your creditors will be notified as soon as possible, but no more than a month before they will receive your first payment through the DMP.
One of my creditors said they don't work with CCCS.
It is not unusual for the person calling you to be unaware of his or her company's policy of cooperation with CCCS. The written proposals we send to your creditors are sent in accordance with the creditors' instructions. In the unlikely event that a proposal is rejected, we will notify you directly. If a creditor notifies you IN WRITING that they will not accept payments through CCCS, call our Customer Care department as soon as you receive the notice, and we will explain what needs to be done.
Will my creditors stop interest and fees now that I am on the DMP?
Most creditors will either reduce or stop interest. Many also bring your account current and stop late and over-limit fees after they receive three or four payments through CCCS. It is important that you review your creditor billing statements each month and report any concerns you have to our Customer Care department. Also, be sure to send in the most recent statements in the 4th month of your DMP and then every 6 months thereafter.
Can I pay by check, or make an electronic deposit?
Although we do not accept personal checks, you may make an electronic payment from your checking or savings account.
When will the phone calls stop?
Many of your creditors will stop calling you as soon as they receive the written notification from us that you are participating in a DMP. Others will stop calling after they have received the first few payments through CCCS. Be sure to refer any creditors to us, where they can get the answers to their questions. Ask them to call (315) 474-6026.
Help! I need to stop the AutoPay withdrawal for this month!
We need two full business days prior to 2pm to be able to stop the withdrawal. So call us RIGHT NOW at 800-479-6026 to speak directly to a representative, or log into your online profile to stop your Autopay. Do not send an email or leave a message to stop the withdrawal as the message may not be received in time.
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