Why A Credit Card Debt Woman Opts For Debt Management Program (DMP)?

As a credit card debt woman who has been in a debt management programme since October 2008, I am always asked why I chose to enroll in a debt management program.

Firstly, the debt management plan I signed up with is FREE. There is neither enrollment fee nor monthly service charge involved.

Yes, free debt management program that is not available to Americans, Britons, Canadians and the rest of the people in the world; it's only for Malaysians.

Since it's free and I couldn't bear with my credit card debt anymore, I made a visit to the credit counseling and debt management program agency in August 2008.

Of course I did try out debt reduction management tips to pay off my credit card debt before I resorted to signing up with the DMP.

I started my debt reduction in 2007 and at that time, my credit card debt was at its height, RM63,809 ($18,000 plus.)

I budgeted, curbed my spending habits and paid more than the minimum payments for more than a year and successfully reduced my credit card debt from RM63,809 to RM40,344 in August 2008.

Unfortunately, bad things beset and I decided to enroll in the debt management program to get out of debt without stress.

What were the bad things? First, there was not enough money from hubby and me to pay the bills. Hubby's business was not doing well and my online income was decreasing due to the global recession. Money was always not enough to pay all the minimum payments after paying the car and home loan installments, utility bills, expenses and groceries.

When the minimum payments were not paid on time and later missed, missed and missed, banks started charging late payment fees, over-limit charges and miscellaneous fees that kept adding new debt to my outstanding balance.

In August 2008, I couldn't take it anymore. I was suffocated by my increasing credit card debt and stressed out by the incessant phone calls from banks, warning letters from creditors, and even visits by third party agencies!

I made an appointment with one of the senior credit counselors at the credit counseling agency. I must tell you, it's a bumpy journey when it came to submitting my debt management plan enrollment form. I had to visit the agency at least three times before I successfully submitted my application form to the credit counselor.

My credit counselor was very strict; I was told by the customer service executive at the agency that my counselor would only hand out application forms to applicants whom he was 100% sure that they would be approved of the plans.

In October, my free debt management program was approved! Since then, I have been making One lower monthly payment to One agency on One due date. From paying more than RM1,500 to RM320, it's a huge savings!

Later, it's hubby's turn to submit his application after he was sure that there was no catch. His debt repayment plan was approved in February 2009 and his monthly debt repayment is RM360.

In case you are confused, both hubby and I created the credit card debt. I am too used to mentioning my credit card debt, my debt, my...

Yes, ONE credit card debt, but TWO debt management plans.