6 Key Ways to Prevent Chronic Headaches from Debt Management ProgramsOur society is up to its eyeballs in debt. Enticing ads abound from debt management programs promising to reduce debt by 50% or more, cut monthly debt payments, stop late fees, and restore good credit. As a result, credit card debt management services are now one of the fastest growing industries. Before you consider these services you better do your homework. There are reputable debt management services that can help solve debt problems and teach people effective money management skills. But, consumers need to be very cautious. Just because an organization states that it offers free financial counseling services or it's a christian debt management company, doesn't necessarily mean that its services are free, affordable or even legitimate. According to the Better Business Bureau, the number of complaints against American consumer credit counseling companies has risen dramatically over the past few years. This isn't surprising since our society has gotten deeper into debt. The Federal Trade Commission, as well as many State Attorneys General, are investigating and prosecuting some credit-counseling organizations for engaging in deceptive business practices. And then, there are outright thieves who pretend to be credit counselors in order to get their hands on your personal information or even gain access to your accounts. 
Just remember--if it sounds too good to be true, it probably is.
If you are unable to pay your bills and you're stuck in debt, consumer credit counseling services may recommend that you enroll in a debt management plan (DMP). A DMP, by itself, is not credit counseling. In a DMP, you deposit funds each month with a debt management company. The debt management company uses your deposits to pay for unsecured debts, like credit card bills, student loans and medical bills, based on a payment schedule the counselor develops between you and your creditors. Your creditors may agree to lower interest rates or waive certain fees. You still need to check with all of your creditors, though, to make sure each creditor has actually agreed to the concessions your debt management program outlines. A successful program requires you to make regular, timely payments. It may seem easy for someone else to handle your debt problems, but it can take four or more years of harsh financial discipline to complete one of these debt management plans. Throughout the duration of these debt management programs, you may not be able to apply for or use any additional credit. Here is the bad news. According to a disturbing report by the Consumer Federation of America and the National Consumer Law Center, only 26% of those who set up debt management programs with companies affiliated with the National Federation of Credit Counselors actually completed their program. A one-out-of-four success rate is simply not good enough for me, and it shouldn't be good enough for you or anybody else.
If your current financial condition, including your debt load, is getting worse, know that there is help and hope available to you. Follow the step-by-step advice in The Ultimate Guide to Master Debt and Amass Wealth
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