How a Debt Management Plan Works
A Debt Management Plan (DMP) through LSS Financial Counseling can lower your payments and reduce your interest rates by consolidating your debt into one monthly payment. LSS Financial Counseling and our financial counselors are certified by the National Foundation for Credit Counseling (NFCC) and we are ready to support you!
Our advice is tailored to fit your goals. You review the recommendations and options and decide what next steps are right for you.
Contact Us & Get Started
Our free and confidential services are available nationwide by phone or virtually. For in-person appointments view our office locations to find a location near you!
We have counselors who are fluent in English, Spanish and Hmong. Interpretation, Telecommunications Device for the Deaf (TDD), and TeleTYpe (TYY) services are available as needed.
Phone, Virtual or In-Person Appointment
Call 888.577.2227 to schedule a phone appointment at a time convenient for you or an office appointment at one of our locations.
Get all your support by email.
To get started:
- Create your financial profile online any time of day with an email address and a password.
- Next, share your financial goal(s) and any other information you believe would assist us in understanding your financial circumstances.
- Then provide the amount of your household take-home income, balances and payment amount for credit card and unsecured debts, and monthly expenses. Click Finish to submit your information. Once submitted, your financial profile cannot be changed or updated.
- Finally, a counselor will email you within two to three business days to provide options and work with you to determine next steps to reach your goal(s).
If you are seeking guidance for student loan debt or housing issues, please call us at 888.577.2227 to schedule a phone appointment.
Please note: we do not provide retirement planning services or investment advice.
What to Expect after Starting a DMP
Determining Your Payments
The purpose of a Debt Management Plan is to help you get out of debt. Your financial counselor will work with you to establish a budget that includes a realistic monthly debt payment to your creditors. Your DMP payment will be based on the amount you owe and individual creditor guidelines. It is important that no further charges are made while you are on the program. You can discuss any concerns with your counselor during your sessions.
You can make your monthly payments by mail, electronic payment service/ACH, in-person, or online. Dropping off or overnighting a money order or cashier’s check is the method that will be processed the fastest. We encourage you to pay extra on your DMP payments when you are able, but keep in mind it’s important to build up emergency savings at the same time.
Once you’ve set up a DMP, creditors may continue to you contact you until they agree on the monthly payments, or until they’ve received up to three consecutive payments. You will continue to receive statements from each of your creditors, as well as a monthly statement from LSS. This will allow you to monitor your progress and ensure your monthly interest rates remain as your counselor described.
Your Credit Score
Credit scoring is based on several factors. Participants who consistently make their DMP payments on time and do not incur new debt while on the DMP are likely to have a higher score over time. Participating in a DMP may also improve your chances of getting credit in the future since your debts will be paid in full.
Each creditor will have their own policies on reporting DMP participation to credit bureaus. Fair Isaac Corporation, which calculates the FICO scores most lenders use, are on record that they will not deduct points from your credit score for participating in a DMP.
To learn more about reducing your debt and Debt Management Plans:
Review our online resources and fact sheets.
Ask a certified LSS financial counselor! We are happy to answer any questions you may have, without obligation. Any information you share with an LSS financial counselor is confidential.