1. Do-it-yourself debt management plan (DYP):
Under this plan you make a quality decision to not use the accounts any more. You pay double the monthly minimum payment on ALL accounts (this should be a minimum of 3% of the balances or more). For an inactive account, the correct funds to properly pay off the balance is usually about twice the requested monthly minimum payment. Be careful to make all payments on time to avoid late fees. Set up a system to not be late.

For this tool, purchase educational information from Harbour and apply for a credit when you pass the final test on the Internet. :: Educational Materials ::

2. Harbour Credit Counseling Services, Inc. "Debt Management Plan" (DMP):
This plan is referred to in the industry as a "negotiated" plan, involves intervention by Harbour with your creditors. Harbour's non-profit status permits us to obtain special reduced or eliminated finance charges and lower monthly payments to improve your payoff success. In addition, late fees and over limit fees are eliminated to make sure that the balances come down quickly. Another advantage of this DMP is that you only make a single monthly payment to Harbour and all the accounts are automatically paid. You continue to get your credit card statements but, Harbour sends you a statement also defining funds received and where they were applied in your behalf. Once this plan has been established and set up on the creditor's systems, phone calls and delinquency letters will cease. This tool is referred to in these document areas as "Credit Counseling". This is the primary service offered by Harbour Credit Counseling Services, Inc. During this time you can also purchase the educational materials and receive a credit on your account when you pass the final test on the Internet. All the information needed to get started is on this website www.40debts.org, or via telephone at (800) 403-3287.

3. "Debt Resolution Plan" (DRP):
This plan is referred to in the industry as a “settlement plan”. Under this plan you select an escrow agent and settlement organization This plan is referred to in the industry as a "settlement plan". Under this plan you select an escrow agent to hold your monthly payments and take the creditor phone calls as well as the collection notices. When your funds in the escrow account build to around half of one of your balances, the settlement organization attempts to get the creditor to agree to clearing the account for far less than the balance owed. As your monthly funds continue to accumulate, each debt is settled out. Detailed information on this plan is available at Debt Resolution Plan.

The graph to the left is an example of the estimated amount of resources it would take to pay off $20,000 in credit card debt on each of the plans. Click on one of the bars for more information.