Debt Management Consolidation
Tuesday, August 11th, 2009 Subscribe To Our Feed
Right now, it is all too common for individuals to be in debt to the point that they need to enlist outside debt management help to be able to resolve their debts. Not only can the debt be overwhelming, but the stress of dealing with the problems associated with these debts can be debilitating. Along with all this, you have to try to come to a decision on how to manage your debt. Let someone else manage your finances also brings concerns of reliability.
Credit counseling is one of the best ways to get debt management help, but if you are seriously past due (more than 3 months), it might not work for you. Debt counseling has an enrollment fee of $50-$75 and a monthly fee of $30-$50. This may sound expensive, but it you consider that most of your interest rates are going to go down to 10% or less, $30-$50 is a steal.
all the interaction with your lenders will be done by the credit counseling company. You will make one payment per month to them and the credit counseling service will disburse it to your lenders as required. Your collection calls will stop, your interest rate will be reduced and your fees eliminated. The important thing here is not to enter into an agreement that you cannot fulfill. You will still be required to a make a payment that is about 2% of your total credit card balances. Depending on your total debt, your debt management plan will take 3-7 years.
Debt management help through a credit counseling service can be what you need if you feel you are becoming overwhelmed with debt. However, this is probably not going to work for you if you have are not able to make the 2% payment each month or if your debt is more than 3 months past due. Bankruptcy and debt settlement work best for this.
A good start is with a credit counseling organization. Many credit counseling companies offer debt settlement also, because it is needed at this time. Financial education and budgeting information is available through the credit counseling organization.
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