Debt Management Programs (DMP) – Let Us Negotiate For You

 

Debt is unmanageable, afraid to answer the phone, afraid the knock on the door is a Collector, not sleeping. It goes on and on. Do you recognise any of these or other symptoms? Debt is not fun and the related worry does not help. You need a solution. We at On Your Side created this company with you in mind. There are many better solutions available other than a Debt Management Program (DMP) but in some cases, this is the only go to solution and a way better alternative to Bankruptcy. We will look at all other alternatives including a Consumer Proposal before considering a DMP.

What is a DMP?

It is an agreement with the creditors to the consolidation of payments that will satisfy all creditors over time. In other words, we call the Creditors or Collectors, or Lawyers, whomever we need to, and make an offer to settle with them at an amount and low monthly payment that you can afford. All interest stops so you know what the total repayment is and a date when the total debt is paid in full. No credit checks are necessary, any late fees and over the limit fees may be reduced or even eliminated. It is flexible and can be paid out early. Taking advantage of debt settlement in Canada is a smart idea. Month after month, people may struggle to make the minimum monthly payment. This is because they are not only paying back what they initially borrowed but are also dealing with interest rates on this amount plus things like overcharge and late fees. Settling a debt will allow you to reduce your monthly payments and the opportunity to reduce your debt principal, not just your interest rates. An effective debt settlement program can typically reduce your total principal by 40 – 60% and get you out of debt in 12 – 36 months. Negotiating a DMP is a skill where experience and training is a huge benefit, only our Certified Debt Specialists (CDS) trained through the International Association of Professional Debt Arbitrators (IAPDA) should attempt this.

Debts that can be included

Unsecured debts (such as credit cards, department store cards, payday loans or other loans) can be included. It is not possible to include secured debt (e.g. car loans, mortgages) in a debt settlement nor is it possible to include income tax debts, student loans and certain other specific unsecured debts.

Stop legal action, harassing calls, Interest accumulation etc

Although you may stop making payments to creditors, the debts are not settled until the debt settlement company completes its negotiations with each creditor so interest charges will continue to accumulate on your debts. Therefore, any of your creditors can still take legal action by starting lawsuits, seizing assets or garnishing your wages, and collection agencies can still make harassing phone calls. Debt settlement companies have no legal ability to stop them. The process for negotiations can take time depending on your individual situation. The legal actions, harassing phone calls and interest on payments, will only stop when an agreement is entered into with each creditor. If any of your creditors refuse the suggested settlement plan, your debt with that creditor would be excluded from the plan and you will still owe that creditor the full amount of your debt, including accrued interest. You will be fully informed before we make any final agreement on your behalf.