Debt Management can be complicated, especially if you don’t know where to start. Below are some of our most frequently-asked client questions about Debt Management Plans.
- How can TCA’s debt management services help me?
Since 1987, TCA has been helping consumers around the country manage their finances. To find out if a debt management plan (DMP) is right for you, fill out the free debt assessment. A certified credit counselor will guide you through the process.
- What fees are associated with a Debt Management Plan?
The initial consultation and debt review are free. If you enroll in a debt management plan, a certified counselor will advise you of any fees. These fees typically include a one-time setup fee and a modest monthly fee, which is included in the monthly debt management payment.
- Will my credit card accounts be closed when I start a Debt Management Plan?
Most creditors will close accounts when you enter a debt management plan. If you decide to enroll in a debt management plan, we suggest you contact creditors first to request accounts be closed "at consumer request."
- Can I open new lines of credit while enrolled in a Debt Management Plan?
We recommend that clients enrolled in a debt management plan do not open new lines of credit until the current debt is cleared. Creditors may discontinue benefits if you do. Vehicle and housing loans are unique and may be necessary while enrolled in the program. Our certified counselors will work with lenders to assist with such loans.
- Do I continue to pay my creditors during the interim period before the program begins?
We recommend that you keep all accounts current or continue making payments until the debt management agreement is officially activated with Take Charge America.
- What should I do if my creditors call during the Debt Management Plan process?
Prior to enrolling in a debt management plan, explain to your creditors that you plan to take part in the program. Once enrolled, you can refer all creditor inquires to Take Charge America.
- Can secured loans and IRS payments be included in a Debt Management Plan?
Mortgages, vehicle loans and other secured loan payments will be included in a personal budget, but they will not be placed in the program. IRS payments can be included in the program at the regularly-scheduled (not reduced) fixed payment amount.
- How long will it take to pay off my debt while enrolled in a Debt Management Plan?
Every situation is unique. The length of the plan will depend on a number of factors such as accuracy of creditor balances, finance charges and any debt added to the program at a later date. Most clients on debt management plans are able to pay off their enrolled credit card debt in five years or less.