A debt management plan for sure can be the only way for people with unmanageable and massive debts. Besides reducing your monthly debt payments to an extremely manageable level, you will be certain that your costs are all taken care of, every single month. However, your circumstances can actually change all of a sudden if you miss a payment to your debt management plan. The situation can actually get serious before you know it.
What would the creditors or the debt management company do if you miss one of your monthly payments? The debt management company will have to make a notice about the missed payment and have a policy in place. They will have action taken against you immediately because of that missed payment. This is because not paying your monthly payment to your creditors will mean that the excellent deal the debt management company had with your creditors has been violated by you. Additionally, the creditors will also have the choice to actually cancel the agreement with your debt managers.
If your creditors cancel the agreement, you will not get any notice and your interest rates will go up. The worst part, the lateness charges will be back. However, the debt management company can also negotiate with the creditors again. However, the creditor may decide to change the terms of the deal this time round. They might not be as good and accommodating as before. The best thing is to ensure you do not miss any payment because if you do, it will certainly impact negatively on your credits and even future borrowing.
However, if at any time you find you are not able to pay your monthly payment, you should contact your lenders or debt managers to explain the situation. The sooner you do this, the better for you.