What is a Debt Management Plan and Can it Help you?

We are all in debt of some form; the mortgage, the loan, the credit cards, the list is endless. There are levels to debt; from paying your home loan and managing your finances to owing lots of people lots of money and everything in between. Credit cards are the usual culprit when a person finds they aren’t making enough to pay all the bills; when you pay off all the cards outstanding, you have nothing left and have to use the plastic to get through the month. This a credit card loop that many find themselves in and the debt management plan might just be the solution.

What Exactly is a Debt Management Plan?

When you make contact with an online debt recovery specialist, they create a debt management plan that involves the company communicating with all your creditors and coming to an agreement that both parties (you and the creditors) are satisfied with. The agreement would centre around you paying each creditor a specific amount per calendar month and in return, the creditors agree to cease sending you demands and, in many cases, interest charges are frozen. Of course, the intermediary would agree with you about how much you can afford per month prior to approaching your creditors.

Positive Response

Creditors are human and they want to resolve the situation as much as you and if a debt recovery company contacts them with a proposal, they are happy to enter into negotiations and work with you, rather than against you. Once the agreement is in place, that will be the end of the phone calls and final demand letters and providing you stick to your side of the agreement, you won’t hear a thing until the day comes when you are debt free.

Making an Offer

You might not be able to offer very much in terms of regular payment, but even a small sum is better than ignoring the situation and hoping it will disappear. Take a proactive stance and approach your creditors and you will get a warm and positive response; your creditors do not want to go down the legal path to court proceedings any more than you do and are happy to come to some kind of arrangement.

Search online for a company that offers debt management solutions and see what they can do for you and you might be surprised to learn that a debt management plan is the best option.

Comments are closed.