You might come across the term debt management if you are looking for a solution to clear your debt or at least make your financial situation better. Debt management is offered usually by debt counseling agencies, but you shouldn't mistake it for debt consolidation or debt counseling because those are very different things.
You should opt for debt management when you find yourself in financial difficulty because of the following reasons: your interest rates are too high, you have more than one unsecured loans, you have tried all the other methods of debt elimination but failed to eliminate your debt and you don't want to file for bankruptcy. Debt management could be a life saver for a person who has no experience with debt and debt elimination programs. So once you found a company that offers debt management services you need to expect some certain steps you will experience during the process.
1st step- Prepare to have your whole financial situation analyzed th oroughly. They will calculate your interest rates, search for better ones, decide whether your need a certain plan or another.
2nd step- They will deal with your creditor's phone calls and start negotiating for lower rates in order to get you a better deal than you already have. You can also negotiate the amount you have to pay each month if you can't afford to pay it anymore.
3rd step- Make a plan. The company will make a better plan for your financials than you already have now in order to help you avoid being in a financial difficulty in the future. Also, they will negotiate with the creditor a payment plan much better than the one you already had, which suits your needs.
4th step- There's another option you can take and you will go through this step only if have more loans: paying the debt only once a month. You can renegotiate and pay your loans with one big loan and then you can pay that loan for the next 3 to 4 years. The advantage of this option is the fact that you may get lower interest rates on that loan.
So, as you can see the process is quite simple and you can get help easily when choosing a debt management company. This can be one of the best ways to manage credit card debts together with debt settlement and debt consolidation.
Debt settlement is a legitimate alternative to filing bankruptcy. If a consumer has over $10k in unsecured debt and is currently experiencing a financial hardship then debt settlement can make financial sense. To find legitimate debt settlement companies in your state that have proven track records of settling consumer debts then check out the following link: Free Debt Relief [http://www.debtreliefemergency.com].
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