DMP FAQ for Current Clients

Frequently Asked Questions

My creditors keep calling me. What should I do?

Expect the calls to continue for the first 90 days of the Debt Management Program as creditors may take that long to process the proposals that we send them. In addition, some creditors will not give you their interest rate concession until you have made three consecutive payments. During this period, give any creditor who calls you your client number, our phone number and your expected deposit date. Once the 90-day period has ended, the call volume from your creditors will usually stop.

What happens when I pay off an account? Will my deposit decrease?

The goal of the Debt Management Program is to get you out of debt within 36-60 months. When you pay off an account, the payment that was going to that account will be applied to another account — either to an account which has the highest interest rate or to the creditor with the smallest balance. If all else is equal, we’ll divide the extra amount amongst all of your remaining creditors.

To pay off your debt as quickly as possible, your monthly deposit should stay the same.

Should I notify ClearPoint if I am going to miss a payment or am not able to send in the full amount?

It is very important that you immediately contact a customer care representative to notify us that you will miss a payment or only make a partial payment. Please provide a brief description of the problem so that the information can be notated on our file and we can convey the information to your creditors.

If you miss payments or make partial payments, late or past due fees may be charged by your creditors for the months a full payment was not received. Additionally, if you miss a payment or make partial payments over two or more months, your creditors may discontinue your debt management plan with them, ending the interest rate and other concessions associated with the plan.

How do I make changes to my electronic withdrawals?

If you are enrolled on the ACH program for automatic electronic withdrawals of your payments, you can make changes in the amount to be withdrawn by calling one of our customer care representatives and requesting a change. Or you may complete and submit the form on our web site. We must receive your completed change form at least 10 days prior to the scheduled payment withdrawal.

Can I add new accounts on to my existing plan?

Accounts that were not included on the Debt Management Plan originally may be added at a later date. However, please note that some creditors will automatically reject the addition of an account to the plan for certain reasons such as:

• evidence of recent charges
• the account was opened within the past nine months
• the account was on another type of “hardship” plan with them (the creditor) or another agency.

Also, if you add accounts on, the payment on the new account will be accelerated to pay the new account off within the same time frame left on your original DMP agreement.

Can I change my payment due date at any time?

Yes. But you must also make sure that you notify your creditors to change their due dates to correspond with the new payment due date you want with ClearPoint. This will insure that payments get credited in a timely manner and that late payment fees are not charged.

How often should I send ClearPoint my creditor statements?

In order for us to have the most accurate record of the outstanding balances for all your accounts, we ask that you send in your statements at least every six months. You may either fax or mail them to us. We will update your balances immediately.

It is important for you to continue to review your creditor statements, throughout your debt management plan. You should compare your ClearPoint account statement with your creditor statements each month to insure that payments are being posted in a timely manner.

What can I do if my circumstances change and I can no longer maintain the same payment due to a loss of income or increased expenses?

We offer re-counseling for all individuals on the program that may be struggling to meet the original payment amount due to higher expenses or decreased income. You can call a customer care representative to schedule a re-counsel appointment with any one of our certified counselors. The counselor may be able to obtain agreement from your creditors to temporarily reduce your payments until you are able to resolve some of your difficulties and get back on track again.

Can I request that extra funds (that I send or that result from one of my creditors being paid in full) be sent to a particular creditor?

We must have disbursement instructions in writing and we must receive the requests in advance of our disbursement date so that we have time to make the changes. Please contact a customer service representative for assistance doing so. Call 877.422.9040 or email us.

Once I join the DMP, may I continue to use credit occasionally?

If you wish to remain on the DMP, you cannot obtain any “new” credit or continue using credit cards that are included in the repayment plan (use of business cards not included in the plan may be permitted–speak with your counselor for details). Using credit outside of these parameters can result in creditors automatically revoking concessions or dropping you as a client.

Can I review my account information during non-business hours?

Yes. You will have access to your account information at any time through our web site. Just register under client log in and you will have access to your latest account information. You can even update and change your balances yourself, if needed.

I am nearing the completion of my debt management plan. In six months, I expect to have paid off my debt in full. Is there anything I can do now to start rebuilding credit and improve my credit report?

Congratulations on your achievement! The place to start is with your credit report. Before taking the steps to improve your credit, you need to know where you currently stand.

Obtain a copy of your credit reports free through www.annualcreditreport.com.

Once you’ve seen your credit reports, you’ll need to dispute any incorrect information on the reports by challenging such information with the credit bureaus. You can do this over the Internet (through each credit bureau individually).

To start rebuilding your credit, you may obtain a secured credit card while still on a DMP. A secured card is issued when you deposit money into an account in a financial institution. Many secured cards start with a deposit of between $250-$500. When you use the card, you are allowed to charge up to 100% or 150% (depending on your card) of the deposit and make monthly payments so that your balance doesn’t exceed the allowable line of credit. You need to make monthly deposits into the account and use it sparingly and carefully. To shop for the best rates on secured cards, visit www.bankrate.com. Before applying for any secured card, make sure to ask if the issuing company reports activity to the credit bureaus. If they do not, find another credit granter who will (otherwise you will not be effective in building a positive payment history with the credit bureaus).

The fact that you have been paying down your debt over course of DMP, in and of itself, will improve your credit standing. The lower your debt, the better your credit report. Other ways to improve your credit report and score include paying all of your bills on time, increasing your savings and assets and limiting applications for new credit. Prior to obtaining new cards, our counselors strongly suggest that you create an emergency savings fund to cover three to six months of living expenses, so that you will not be forced to use credit the next time you encounter an unexpected expense, needlessly running up the balance.

You’ve come a long way already. Now take the steps you now to improve your credit further and remember that after you have paid off your DMP, many creditors will take off any mention of you being on the DMP after a period of 3-6 months. Good luck!