Take Charge America has helped more than 2 million people pay off back over $6 BILLION in personal debt through debt management plans. So, we know a thing or two about what it takes to be successful on one. From following a budget to learning your personal spending triggers, there are several tried-and-true tips to help ensure you pay off your credit card debt and complete your plan. Let’s look at how to be successful on a debt management plan.

Follow Your Budget

You received a balanced budget when you signed up for your debt management plan. Our clients tell us following a budget is one the easiest ways to make progress on the plan, because they it allows them to always know where their money is and what it’s doing. Do your best to follow the budget we’ve provided, and adjust it as needed. For example, if you have in increase or decrease in income, a change in a major expense — such as housing — or if you receive unexpected funds from gifts, overtime or bonus pay.

If you’re struggling to follow your budget or feel like it’s too restrictive, call a counselor and they can help you adjust it.

Make Payments on Time

Being on a debt management means you’re only responsible for making one payment a month, rather than several. But that means it’s extra-important to make that payment on time. That way, we can be sure to disburse your payment to creditors before their due dates each month. The best way to ensure you pay on time is to set up electronic funds transfer (EFT) that will draft out of your bank account on the same day — and for the same amount — each month. You can always adjust your payment date by calling a counselor or logging in to your account at MyTCA.org.

And remember, in additional to your regular monthly plan payment, you can also make extra debt management plan payments as your budget allows. This will help you see progress quickly and pay off your debt even faster.

Focus on Needs

Living life on a budget and without credit cards will help you focus more on needs and less on wants. When we use credit cards for spending, it’s easy to “treat yourself” to things you don’t really need, because it doesn’t feel like spending real money in the moment. Learning to recognize the difference between wants and needs and focusing more on needs will help you be successful on a debt management plan.

That’s doesn’t mean you can’t indulge your wants now and then. But it’s about planning and saving for them, rather than giving into temptation in the moment.

Learn Personal Spending Triggers

Whether it’s loneliness, boredeom, FOMO or something else, we all have those moments that cause us to reach for our wallets or hit ‘add to cart.’ Learning to recognize and understand your spending triggers can help you overcome them and keep you focused on your goal of paying off your credit card. Part of being successful on a debt management plan is resisting the urge to spend money when you don’t need to. Learn more about how to recognize and overcome common spending triggers. 

Avoid Additional Debt

When you’re trying to get out of debt, the last thing you want to do is add more debt. In return for their concessions, like lower interest rates, the creditors you have enrolled in the program ask that you close those accounts. And we strongly recommend not opening any new lines of credit while you’re on a DMP. If you have an emergency or need to make a large purchase while you’re on the plan – such as a car or home — call and talk to a counselor about your options before applying for any new credit.