What is a Debt Management Plan?
Our Debt Management Plan or DMP sets up a payment schedule for you to repay your debts. By voluntary agreement, you deposit funds with our agency each month. We send those funds directly to your creditors.
You may also receive a reduction in finance and waiver of other charges. When you have completed your payments, we will assist you in reestablishing credit. A DMP serves the dual role of helping you repay your debt and helping creditors to receive the money owed to them.
Receipt of financial counseling and education services does not guarantee participation in a debt management program.
If I enroll in a DMP, can I continue to use my credit cards?
No. As a rule, your creditors will close your lines of credit. In limited cases one credit card may be maintained for emergencies. When you complete the DMP, some creditors will help you reestablish your credit.
Are most creditors willing to work with your agency?
Yes, most creditors support our services. However, if for some reason they do not, we will still work with them to reduce your payments.
How long will it take my creditors to accept the proposals sent by Clarifi?
The creditors usually accept proposals within 90 days of the date they were received.
When will the late/ over limit fees stop on my account?
Fees usually stop after the third consecutive payment posts to your account, after the proposal is accepted.
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