Consider Debt Management Program (DMP) Before Filing For Bankruptcy

If you are thinking of declaring bankruptcy because of your unmanageable credit card debt, don't! There must be or should be a way out before resorting to filing for bankruptcy.

Like you, I once thought that the only solution to my innumerable credit card debt was going bankruptcy. I didn't know there were debt relief options like credit counseling, debt consolidation, debt management and debt settlement to help people get out of debt.

Have you checked out these debt help relief options yet? If you haven't, ask around to see if any of your family or friends is getting debt relief help. Or you can do your search online.

I had been blogging about my credit card since 2007, but I never knew there was a credit counseling and debt management agency available in my Malaysia. I thought credit counseling agencies only existed in the US and other advanced countries.

Thinking back, I didn't even google to check if there was such an agency that I could get help from.

If you are not sure whether there is any credit counseling agency in your country, do your search online.

I am not quite sure the difference between the US debt management program and the debt management program available in Malaysia is.

As far as I know, the debt management program in the US is offered by both non-profit and for-profit credit counseling agencies. While in Malaysia, there is only one debt management program and it comes with no charge. No enrollment fee. No monthly service fee.

In terms of enrolling in the debt management program, the process is quite similar. Let me share with you the process I have been through.

Before you are enrolled in the program, you must first attend a credit counseling briefing. During the session, your credit counselor will make a thorough review of your financial situation and help you make a budget and explore other debt relief options such as self-help debt management or debt consolidation.

If it is determined that credit counseling is not enough to help you get out of your debt, then you will be recommended to sign up with a debt management plan.

Your counselor will negotiate with your creditors to reduce interest rates and waive late payment and over-limit fees before he works out a payment schedule that is acceptable to you and your creditors.

Once you are approved of the debt repayment plan, you are to deposit the agreed monthly debt repayment amount into the agency's collection account. From there, your money will be disbursed to your creditors.

I have now been in the free debt management program for more than 10 months. How's life before and after enrolling in the program?

Feeling relieved and grateful. I am relieved because I no longer receive haunting calls from banks, warning letters from creditors and visits by third party agencies. Being grateful because I am given a chance to bring my financial ruin back to track again.