WHAT CAN  DEBT MANAGEMENT DO FOR ME?

If you're in financial distress, debt management companies, also known as credit counseling, will work with your creditors to restructure your unsecured debt.

A debt management plan is designed to have you make one monthly payment to them and they will pay your creditors. Credit counseling services, a form of debt management, do not loan you money however they negotiate with your current creditors to get you towards debt free living.

A debt relief plan created by a debt management service can offer many benefits that can help you get a manage your unsecured debts. They are intended to help you if you're delinquent or have difficulty making your regular minimum payments. They offer a good alternative to filing bankruptcy.
 
Creditors have a financial interest in recovering the money they've loaned. Debt management services will negotiate for benefits to help fund the plans. These benefits typically take effect after you've made three timely and consecutive payments on the plan.
 
 
HOW THE DEBT RELIEVES PLAN WORKS
 
Creditors can negotiate and offer adjusted terms to help you get out of debt:

• Lower interest rates With a lower interest rate, more payment is applied to the principal of your debt: Faster payoff!
• Lower monthly payment Get control of your debts; make consistent monthly payments. This is crucial for your good credit.
• Eliminate late and over limit fees Once you've behind on your payments, creditors will add late fees until you bring your account current. Going over your credit limit results in more added fees to your account. Get rid of them
• Re-age delinquent accounts Creditors may upgrade your delinquent accounts to reflect a current status. This can improve your credit score and your access to credit in the future.
• One monthly payment Makes it easier on yourself. Some plans automatically debit your bank account once a month and make payments to your creditors. You don't even have to write the checks for your bills.

Remember, debt relieves STRESS! 

THE MOST IMPORTANT BENEFIT: Personal Finance Management Coaching
 
A debt management plan may include education on personal financial management. Topics usually covered range from being a smart consumer of credit products, wise budgeting, smart savings practices, and how to handle debt problems. The goal is to provide information that helps you learn more about financial principles. This can be a tremendous benefit and one which you can use as you pursue a debt free living goal.   

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