A Debt Management Plan – Do You Need It?
A debt management plan is used to pay off personal unsecured debts. Before I start explaining debt management plans let me inform you what personal unsecured loans are. An unsecured loan is one that isn’t blocked by the collateral, which is the borrower’s pledge over certain property. With that said, let’s take a brief look at such plans. What usually happens in a debt management plan is that a third party comes in to look at the debts, i.e. assessing the budgetary plan of yours and re-negotiating with the lender. The objective of this is to give the borrower a realistic monthly installment, especially if he’s missed some installments and the debt is too high. This also helps the lending party by enabling them to collect the payments efficiently. However, you must note that not all types of debts are amenable to this type of plans. Debtors are bound to consult a suitable third party before getting on with the debt management plan. You must understand how the plan works before you consi
