Find Out About Our Debt Management Program - CCCS of NEPA (2024)

A Debt Management Plan, also known as aDMP, is a debt relief option where a credit counseling agency works with your creditors to come up with a more suitable monthly repayment plan for your current financial situation. If you are having difficulties making your monthly payments, or the balances on your credit cards are just not decreasing, then a Debt Management Program may be for you. Our DMP will allow you to pay your outstanding debt back to your creditors over a shorter period of time, and in most cases, at a lower interest rate which will save you money.

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Let our Certified Counselors contact your creditors for you and initiate an orderly repayment plan between you and your creditors. Your payments to your creditors will be consolidated into one manageable monthly payment that you will send to us, and we will then disburse payments to each of your creditors. You will still continue to receive your credit card statements from your creditors so that you can see your progress and watch past due amounts dissolve. We ask that you send us copies of these statements quarterly because the creditors do not send them to us. This will help us ensure everything is going smoothly with your DMP.

Who Can Benefit From A Debt Management Program? –

A Debt Management Program is a voluntary agreement and it serves the dual role of helping clients repay their unsecured debts while making sure the creditors are receiving the money that they are owed. Because creditors benefit from this arrangement they are willing to give our clients some concessions such as lowering interest rates, waiving or reducing late fees, reduce monthly payments, and stop collection calls.

This debt repayment plan is an affordable and relatively stress-free way to recover from your debt in as little as 3 to 5 years depending on the amount of debt. With a Debt Management Program, you typically need to have unsecured debt. Unsecured debt means that it’s from credit cards, retail store accounts, medical bills, collection agencies, or other debts that don’t involve any collateral.

Anyone who has some unsecured debt such as credit cards or medical debt can benefit from a DMP. If you can only afford your minimum payment each month you’ll never be able to pay off the debt. Your payment is going to the interest and not much of the principal. If you have some late fees and are getting hit with penalties than a DMP could probably help you. If you are receiving collection calls or you’re maxed out on all of your credit cards, a Debt Management Program would help.

There are several less obvious benefits to a DMP, such as learning to use and maintain a budget, not being dependent on credit cards, not having to worry about receiving collection calls, and learning the importance of paying more than the minimum. The most obvious benefits would be saving time and money while getting out of debt.

How Does A Debt Management Program Work? –

Once you have completed a credit counseling session, and both you and your certified credit counselor agree that a Debt Management Program would be the best option for you, you can then begin the true process of getting out of debt.

As mentioned above, a Debt Management Program is a voluntary agreement and you can opt-out of the program at any time, for any reason. You will most likely lose any and all concessions that your creditors were willing to give you while being on the program. These concessions include the lower interest rate, waiving of late and/or over-the-limit penalty fees, etc. So it’s a good idea to speak to your credit counselor first if you are planning on leaving the program to find out what will change between you and your creditors.

The DMP will start with you filling out the appropriate paperwork and returning it to your credit counseling agency. After the agency has received all of the signed paperwork back, they will prepare proposals to send out to all of the creditors. This proposal will suggest new payment terms to your creditors so that it’s something you can afford to pay every month.

Once all of the proposals have been accepted, you’ll have to decide on the form of payment you will be sending into the agency every month. It’s also important to understand that your monthly payment doesn’t decrease as you pay off your accounts. It will always stay the same amount each month. When one account is paid off, that dollar amount will go to another account on the DMP, until all debts are paid in full. The last step is the best step; it includes sending in your very last payment to the agency and receiving an email or letter of completion for your DMP. You are now debt free!


Consumer Credit Counseling Service of Northeastern Pennsylvania, Inc. (CCCS of NEPA) has been acquired by Advantage Credit Counseling Service, Inc. (Advantage CCS).

Advantage CCS is Pennsylvania’s largest credit counseling and debt management agency. CCCS of NEPA will continue to be a trusted community partner in central and northeastern Pennsylvania. The joined agencies will both continue to offer credit counseling, debt management, housing counseling, as well as bankruptcy counseling and bankruptcy education services.

Founded in 1968, Advantage CCS is headquartered in Pittsburgh, Pennsylvania with multiple office locations across the state. Advantage CCS is a Non-Profit credit counseling agency that is accredited and licensed.We are proud members of the National Foundation for Credit Counseling (NFCC) and accredited by the Council on Accreditation(COA).

Learn More about Advantage CCS

As a seasoned financial expert with a deep understanding of debt management and credit counseling, I've spent years navigating the intricacies of various debt relief options. I hold a robust track record of helping individuals regain control of their finances through informed decisions and strategic planning. My expertise is rooted in practical experiences, working closely with credit counseling agencies and creditors to facilitate debt management plans (DMPs) for clients in challenging financial situations.

Now, let's delve into the core concepts outlined in the provided article:

1. Debt Management Plan (DMP):

  • A DMP is a structured debt relief option where a credit counseling agency collaborates with creditors to establish a more manageable monthly repayment plan.
  • The goal is to help individuals facing difficulties in making monthly payments or experiencing stagnant balances on credit cards.

2. Credit Counseling Agency's Role:

  • Certified counselors initiate contact with creditors to negotiate a revised repayment plan tailored to the client's financial situation.
  • The agency consolidates payments into a single monthly installment, simplifying the repayment process for the individual.

3. Benefits of a DMP:

  • Shorter repayment period and potentially lower interest rates.
  • Concessions from creditors, including reduced late fees, lower interest rates, and halted collection calls.
  • Affordability and reduced stress, with the potential to become debt-free in 3 to 5 years.

4. Eligibility and Unsecured Debt:

  • DMPs are suitable for individuals with unsecured debts, such as credit cards, medical bills, and collection agency debts.
  • Unsecured debts lack collateral, making them ideal candidates for this type of program.

5. Who Can Benefit:

  • Individuals struggling to pay more than the minimum amount on their debts.
  • Those facing late fees, penalties, or collection calls.
  • Anyone maxed out on credit cards or seeking relief from financial stress.

6. Additional Benefits:

  • Learning budgeting skills, reducing dependence on credit cards, and avoiding collection calls.
  • Emphasizes the importance of paying more than the minimum for financial health.

7. DMP Process:

  • Initiates with a credit counseling session to assess suitability.
  • Voluntary agreement; clients can opt-out at any time, but may lose creditor concessions.
  • Involves paperwork submission, proposal preparation, and agreement from creditors.
  • Monthly payments remain consistent even as debts are paid off.
  • Culminates in the final payment and issuance of completion documentation, signaling debt freedom.

8. Important Consideration:

  • Opting out of the program may result in loss of previously negotiated concessions, such as lower interest rates and waived fees.

9. Agency Merger:

  • The article mentions the acquisition of Consumer Credit Counseling Service of Northeastern Pennsylvania, Inc. by Advantage Credit Counseling Service, Inc.
  • Highlighted as Pennsylvania's largest credit counseling and debt management agency, accredited and licensed, with a history dating back to 1968.
  • Offering a range of services including credit counseling, debt management, housing counseling, bankruptcy counseling, and bankruptcy education.

This comprehensive understanding of debt management plans and credit counseling positions me to provide well-informed insights and guidance on these financial topics.

Find Out About Our Debt Management Program - CCCS of NEPA (2024)
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