- Debt management programs help people gain control of their finances, particularly if they have several active accounts. If followed properly, management plans can help consumers organize bills, improve credit and provide debt relief.
- A debt management plan consolidates a consumer's unsecured monthly payments into one monthly payment. It is not a debt consolidation loan, where home equity is used to pay down debt. Certified counselors work to negotiate lower interest rates, knock off high fees and increase the individual's overall ability to pay his bills on time.
- Debt is usually paid off within a five to six-year period. Time frames can vary based on the total amount of debt owed and how much the consumer can pay back on a monthly basis.
- Many debt management companies require a fee for each program account. Be wary of organizations that charge high up-front or monthly fees for their services.
previous post