How Do I Qualify for a DMP?

If you're having a hard time paying your debts, you may want to consider enrolling in a debt management program (DMP), which can help you negotiate more affordable monthly payments. DMPs are usually set up through a third-party group. Debt-management companies work with your lenders to negotiate different payment terms, lower interest rates and the elimination of late charges, to ease your financial burden. The catch is that not everyone qualifies for this assistance; these programs are aimed at those who can and are willing to repay their debts.

Instructions

1

Consult a professional debt adviser before committing to any debt management program. You will likely have to divulge your entire financial history (student loans, credit card debt), which can be a humbling experience. It's important that you don't leave anything out so that the debt adviser can help you make the decision whether to enroll in the program or direct you elsewhere.

2

Research each company and their program. Be sure to find out whether they are licensed in your state and what their fees are. With the help of the adviser, you should be able to determine which program is the best fit. Contact the company to find out if your qualify for its program. This is usually contingent on your ability to repay rather than the amount of debt you have.

3

Prepare to demonstrate your inability to meet current payments. You may be asked to produce financial statements identifying other obligations you have (rent, child-support payments) that prevent you from making the monthly payments. Pointing out any recent financial hardships, such as layoffs or a reduction in work hours, may help strengthen your case for qualifying.