Is your debt becoming more than you can handle? Maybe it's time for you to look into a debt management program. But what is debt management? Well, let's find out!
Debt management usually involves a third party, designated either by court order or by personal initiation, that will help a debtor with his or her debt repayments. In layman's terms, it's the practice of spending less money than you earn. Credit counseling companies offer you debt management plans that help you get your financial situation under control, whether these are heavy debts or damaged credit.
The first step of a management plan is to compile a list of all creditors and the amount of money you owe to each. However, secured debt such as car or home loans are not eligible as creditors and are not included in the list. Once the list is complete and the debts are totaled, the debtor's income and expenditures are totaled as well. These include costs of living expense, mortgage, rent and car payme nts and so on.
This list is then used by the third party agency to assists the debtor in determining the maximum amount of money that can be allocated to your debt repayments. Many third party services will try to lower or even exclude any interests charged during this repayment period. However, you must have more than $10.000 of debt to qualify for a third party service.
These debt management agencies are there to help you regain financial control. Expect to pay a nominal fee for their services but make sure that this fee isn't be based as a percentage of your debt and make sure that the agency is registered with the Better Business Bureau.
Debt settlement is a viable alternative to filing bankruptcy. Most consumers are able to eliminate at least 60% of their unsecured debt while avoiding many of the negative consequences with filing bankruptcy. If you are over $10k in unsecured debt you will be eligible for debt settlement. To locate legitimate debt settlement companies in your state check out the following link:
Free Debt Advice [http://www.debtreliefemergency.com]
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