Debt Management

What is Debt Management?

Debt management is the program that consolidates your credit card debt into one monthly payment, which is sent directly to your creditors by a credit counseling agency, such a Franklin United. A debt management program is one of the many options that a credit counselor might suggest when you’re having issues with credit card debt.

Sometimes debt management might be referred to as debt consolidation, the process of consolidating your bills. These terms are interchangeable within the credit counseling industry.

How Debt Management Works

How does debt management work? During a credit counseling session, a counselor will ask you questions about your current bills. After providing a free budget and debt analysis, they’ll help identify which debts you can consolidate under a debt management program.

There are some restrictions imposed by your creditors when you enter a debt management program, so you’ll want to learn more about how debt management works before signing up for a program.

Benefits of Debt Management

There are many benefits of participating in a debt management program. Many consumers find that by consolidating their credit card debt with this option, they’re able to:

• Lower monthly payments
• Get out of debt faster
• Improve their credit score
• Avoid bankruptcy
• Collection calls will eventually stop

The biggest benefit of a debt management is peace of mind. When your financial burden lessens and you’re able to pay off your credit card debts, you’ll feel better about your life.

Who Should Consider a Debt Management Plan?

Is debt management the financial solution for you? There are some warning signs that can tell you that you should consider a debt management program:

• You can’t pay the minimums on your credit cards.
• You’re consistently late on paying one or more of your bills.
• You’re be hounded by creditors and debt collection agencies.
• You haven’t been able to work out a repayment plan with your creditors.

Even if you’re not late on your bills, but feel that financial disaster is right around the corner, you might want to consider a debt management plan.

Frequently asked questions about debt counseling and debt management.