What is Debt Management?
Debt management, by the standard financial definition, involves a designated third party assisting a debtor with repayment of his or her debt. Many companies specializing in credit counseling offer debt management plans to help people with heavy debt and damaged credit get their financial situation under control. A simpler definition of debt management could be the routine practice of spending less than one earns. However, for all intents and purposes, debt management is a structured repayment plan set up by a designated third party, either as a result of a court order or as a result of personal initiation. A debt management plan entails a series of steps, which the third party service works on with the help of the debtor. The first step typically involves compiling a list of all creditors and the amounts owed to each. Some creditors are not eligible to be included in a debt management plan, and typically, secured debt such as car loans and home loans are not included. Once a list of c
Debt Management is the program that consolidates your unsecured debts into one monthly payment, which is sent directly to your creditors by the Credit Counseling service. Credit Counseling is the actual sessions you will have with a professional counselor regarding debt management, budgeting and personal finances. Consolidated Credit Counseling customizes a Credit Counseling & Debt Management Program that fits your financial needs. Our certified credit counselor’s review your financial information and then work with your creditors to arrange reduced monthly payments, interest charges and fees for your unsecured debt. You make a single monthly payment to Consolidated and those funds are then disbursed to all creditors on a monthly basis. Why Wait? See For Yourself! Receive a personalized Free Budget & Debt Analysis now and take your first step towards achieving freedom from debt.
