A Debt Management Plan Could Cut Your Monthly Payments by up to 50% or More.
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Debt Management Programs Explained
While many consumers define debt management differently, we can all agree that getting out of excessive consumer debt leads to greater stability, less stress, and improved chances for long-term financial success.
Debt relief, debt counseling, debt consolidation, debt negotiations, debt elimination, and debt management all seem to mean the same thing: Get Rid of Debt. However, they can vary widely in their meaning and method. Often, unscrupulous online actors identify themselves by one term but lead their unsuspecting clients down a completely different, and often financially disastrous, path.
If you are looking for a program that helps you repay 100% of your debts at more favorable terms then setting yourself up on a plan such as this may be in your best interest.
Our Debt Management programs may help:
You can enter your information to be contacted by one of our highly skilled counselors, or call us for quicker assistance. Continue reading for more information about debt relief and how you may benefit from it.
What Does A Debt Management Program Do?
If you work with a nonprofit credit counseling agency to manage your debt, you can expect that they will do the following:
Help you put together a personal or household budget.
Provide you with clarity regarding your current debt situation (whom you owe, how much, and how long it would take to repay at minimum payments.)
Compare your current debt repayment options with a debt management program.
Negotiate new agreements with your creditors on your behalf to lower your interest rates, stop late or over-limit fees, and start reporting your payments as on time rather than late.
Simplify your life by accepting a single payment during the month from you and dispersing it to all of your creditors per their new agreements with you.
Offer you multiple free financial education programs, classes, tools, and materials to increase your ability going forward to avoid similar financial struggles.
How to Know Which Type Is Right For You
Debt management seems like a simple and harmless term. Obviously, it refers to the act of managing your debt. Who manages your debt and how they do it become the central questions you need to answer before pursuing your options any further.
You can manage your own debt, of course.
Repaying your consumer debts on your own means you pay no fees. However, once interest rates increase on your debts, paying down on your own may become an impossibility because of higher monthly payments.
You can also turn to a friend, a neighbor, a fellow church parishioner, or even a radio talk show host to help you manage your debt. Each can show you and explain your options for getting out of debt. If they do it for free, they might even help you set up your monthly payments, work with your creditors and schedule your monthly payments.
What they cannot do, though, is simplify your payments and ensure you are getting the creditors’ lowest interest rates.
For that, you will want to turn to a nonprofit credit counseling agency that belongs to one of the two major credit counseling trade groups, such as the FCAA*. These trade groups promote industry best practices, advocate for better services on behalf of consumers served by their members, and set industry service standards.
Do not respond to telemarketing or email marketing, even if the representative claims to work for a nonprofit. Additionally, check with the Better Business Bureau to ensure the agency you work with has an A+ rating. Check out your state’s attorney general office to make sure there are no former, current or pending lawsuits against the agency that would concern you.
When you are ready to work with a nonprofit credit counseling agency, contact the organization directly via phone, email, or their website.