Many people considering DMP do so because they are already facing challenges managing their current debt load including penalty interest and fee assessment. When monthly payments are calculated on credit card accounts, all creditors must use a formula mandated by the OCC (Office of the Comptroller of the Currency) that allows for the minimum monthly payment to cover that billing cycle’s interest assessed, fees incurred and at least some reduction in principle balance. When rates and fees are high so are monthly payments.

By requesting interest and fee concessions from creditors that are included in the DMP through Credit Advisors Foundation, your monthly payment requirement per account can be reduced at the same time that more of the payment you send is applied to the principle balance. This allows for greater balance reduction per payment resulting in a faster debt payoff: three years instead of ten or maybe five years instead of twenty.