Q: Do I have to sign a contract to begin a DMP?

There’s an agreement you sign when starting your DMP. It specifies the program details and gives us permission to pay your creditors on your behalf. The agreement is not a binding contract, and you can cancel the program at any time.

Question 1

How much does a debt management program cost?

Accepted Answer

The monthly payment on the debt management program includes an average monthly fee of $31. Fees are determined based on applicable state law and may also include an enrollment fee. This is minimal considering the amount of money our clients typically save in waived late fees, over-limit fees, and reduced credit card interest charges.

Question 2

Do I have to sign a contract to begin a DMP?

Accepted Answer

There&#8217;s an agreement you sign when starting your DMP. It specifies the program details and gives us permission to pay your creditors on your behalf. The agreement is not a binding contract, and you can cancel the program at any time.

Question 3

Which creditors do you work with?

Accepted Answer

We work with more than 550 creditors throughout the U.S., including banks, credit unions, retailers, medical providers, and collection agencies.

Question 4

Can I still use my credit cards while on a DMP?

Accepted Answer

Since the goal is to pay off debt, the credit cards included in the program will be closed. You can usually continue using one card for emergencies.

Question 5

Can I use credit while on a DMP?

Accepted Answer

Most people stop using credit during a DMP, and some creditors require it. But the tradeoff is regaining control, reducing stress, and rebuilding long-term credit health.

Question 6

Can I reduce my monthly fee and keep my lower interest rate if I remove a debt from my DMP and pay the creditor directly?

Accepted Answer

If you decide to keep your DMP open but remove one of your debts to pay the creditor directly, the creditor typically will not keep the same terms in place.

 

When the creditor sees that payments are no longer coming from a DMP, they usually change the annual percentage rate (APR) back to the original and recalculate a new minimum monthly payment for you.

 

Sometimes creditors will offer a lower APR for a limited time (6 to 12 months), whereas the DMP is for 60 months (about 5 years).

Question 7

Does GreenPath work for banks?

Accepted Answer

GreenPath is a neutral third party that works in your best interest. Many creditors support our work because they believe it results in positive, long-term outcomes.

Question 8

Can I include medical bills or payday loans in a DMP?

Accepted Answer

Yes, in many cases. While DMPs typically focus on unsecured debts like credit cards, some medical bills or payday loans may be eligible. Your counselor will help assess your options.

Question 9

What if I miss a payment while on a DMP?

Accepted Answer

Life happens. If you anticipate a missed payment, contact your client success specialist immediately. They&#8217;ll work with you to explore adjustments and avoid program removal.

Question 10

Can I still qualify if I have a low income or am recently unemployed?

Accepted Answer

Yes! Our counselors will assess your full financial picture. If a DMP isn&#8217;t the right fit due to income constraints, they can help you explore alternatives or support resources that match your situation.

Question 11

Is there a fee to enroll in a DMP?

Accepted Answer

Yes, but it&#8217;s modest and based on your state and financial situation. GreenPath is a nonprofit, and fees are regulated. Fees typically include a small enrollment fee and a monthly service fee. All fees will be disclosed up front with no surprises.

Question 12

Will my creditors know I'm in a DMP?

Accepted Answer

Yes, your creditors are notified and directly involved in the program. This may open the door to better repayment terms and can help reduce negative activity like late fees or collections in many cases.

Question 13

How long does a typical DMP last?

Accepted Answer

Most DMPs are designed to be completed within 3 to 5 years, depending on your total debt and monthly payment capacity. We work with you to find a timeline that&#8217;s realistic and sustainable, so you&#8217;re not overburdened.

Question 14

Can I pay off my DMP early if my situation improves?

Accepted Answer

Absolutely! There&#8217;s no penalty for early repayment. If your financial situation improves, we can help you accelerate your payments and reach your debt-free goal even faster.

Question 15

Can I contact someone at GreenPath if I have questions or concerns about my DMP?

Accepted Answer

Certainly! We have a dedicated Client Success Team that can assist with any questions or concerns you may have. We also periodically reach out to see how you&#8217;re doing.

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