Debt Management Explained
If you are struggling to make minimum payments on your high-interest rate credit cards or other unsecured debt, you are not alone. The recent slow down in our economy has squeezed the pocket books of individuals nationwide. Whether you're considering debt management, a consolidation loan, or even bankruptcy, your objective is simple, you need payment relief and you need it fast.
When trying to consolidate your debt, there are several options you’ll have to consider. The most preferred solution for most individuals is a secured or unsecured debt consolidation loan. However, if you don’t have good to excellent credit a loan may be hard to come by. Unlike an unsecured loan, debt management is available to individuals with both good and bad credit. This solution can help you lower your interest rates, and is usually structured between three to five years. Debt management programs also allow you to combine several payments into one fixed monthly payment.
To learn more about debt management, submit your information using the big orange button above. Our experts are standing by ready to discuss all debt consolidation options currently available to you. Our services are always free, and there is never any obligation to proceed if you are not completely comfortable with your options. Get started today!
Debt Management in Detail
There is no quick fix to getting out of debt. You didn't get into debt overnight, so it's probably safe to assume you won't become debt free overnight either. Successfully eliminating your debt, even at a reduced interest rate, takes time and discipline. Debt management programs can take up to three to five years to complete.
Debt management does not have the adverse affect on your credit like a settlement program or filing bankruptcy. That being said, this solution does require you to close your existing accounts and refrain from taking out any additional loans. While you are in a debt management program, a notation will be placed on your credit report notifying lenders you are using a third party to assist you with your debt. The good news is that this mark is removed from your credit report, once you graduate the program.
The pros of entering into a debt management plan include
- Lower rates on all your unsecured debt.
- You'll have a set payoff term, usually three to five years.
- Your accounts will be paid as agreed and satisfied in full.
- Your credit will remain in good standing.
Credit Considering and Your Debt Management Plan
If you're considering debt management, it's important you know what's involved. A consumer credit counseling company's job is to help you manage and pay down your debts, according to a debt management plan, that has been created by a certified counselor, and agreed to, by both you and your creditors.
In order to enter in to a debt management plan, you must first complete a class administered by a credit counseling company. This is the same course required for those considering chapter 7 or 13 bankruptcy. In this program, a certified credit counselor will assess your financial situation, and will help you establish a realistic monthly budget. This budget and what you can afford to pay toward your debt, will be written out and is called a debt management plan.
This credit counseling company will also work directly with your creditors in an effort to lower your interest rates. The average interest rate reduction you can expect will depend on the severity of your financial hardship. If any of your accounts are currently delinquent, the credit counseling company will also help you bring those accounts into good standing. When enrolled in a debt management plan, you will be required to make a single fixed monthly payment to the consumer credit counseling agency. This payment will then be distributed amongst your creditors on your behalf.
We Can Help You Compare Your Debt Consolidation Options
If you think debt management may be right for you, contact us today. There are several debt relief programs available that can help lower your rates and monthly payment. Our loan and credit experts can help you compare these options side by side so you can be sure you are making the smartest decision. There is never any obligation when speaking with us, and our services are always free. With us you'll never have to worry about being pressured or sold into enrolling in any one program. Come discover what you need to know about debt management, settlement and all other options with a company you can trust. Get started today!