Can You Make Extra Payments on a Debt Management Program?
People who enroll in a debt management program often ask if they can make extra payments to get out of debt faster when they have some extra cash on hand. Whether you receive cash from a tax refund, inheritance, bonus at work or selling something, this video explains the right process to follow for making an extra DMP payment to ensure you pay off the right debts first and don’t affect your enrollment.
[On-screen text] Ask the Expert: Can You Make Extra Payments on a Debt Management Program?
Gary Herman, President of Consolidated Credit: Clients frequently ask if they’re allowed to make extra payments while they’re participating in the program and the answer is absolutely yes. But there are procedures that you need to take in order to make sure you get the most out of your extra payment.
What we advise is that you call customer service, let them know that you’re making an extra payment, and they’ll discuss with you the best way to allocate the money to get you out of debt in the fastest possible way.
[On-screen text]Can I make a payment directly to the creditor?
Sometimes clients will ask if they’re allowed to make the payment directly to the creditors and that can sometimes cause problems, as creditors are unsure as to whether you’re still on the debt management program. It’s always best if you have a question or you’re going to do something out of the ordinary to call customer service and let them know what you’d like to do. We’ll make it as easy as possible.
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