The benefits of debt management plans
When you want to pay off your debt and learn to live debt-free, debt management plans can be a highly effective strategy. Typically offered by reputable credit counseling services, debt management plans consolidate your obligations into a single monthly payment and provide the assistance of a non-profit credit counselor to regain control of your finances.
Debt management plans offer several advantages over other approaches. Unlike debt consolidation plans, you don’t need to take out new loans to pay off old debt. And where debt settlement plans may ruin your credit or leave you more deeply in debt, debt management plans are designed to pay off your debt while preserving your credit rating.
To learn more about debt management plans, contact the helpful credit counselors at American Consumer Credit Counseling (ACCC) today. We are a nonprofit organization dedicated to helping consumers just like you find their way out of debt through free credit counseling and low-cost debt management plans.
5 reasons to enroll in a debt management plan today
When you enroll in a debt management plan with ACCC, you can:
- Get a free credit counseling session where you can learn about different approaches for paying on your debt.
- Consolidate multiple debt payments into a single monthly payment.
- Get the support you need from certified financial professionals.
- Potentially reduce your interest rates and finance charges and eliminate late fees and over-limit fees.
- Finally pay off your debt – in most cases, within 60 months.
ACCC: free credit counseling, low-cost debt management plans
ACCC is a non-profit debt counseling and credit counseling service that has been helping consumers get out of debt since 1991. Our goal is to provide the education, tools, and advice that individuals and families need to regain control of their finances and plan for a debt-free future.
Our services include a free counseling session where you can meet with a certified credit counselor to discuss your financial situation. To help you get a clear understanding your finances, we’ll prepare a detailed review of your income and expenses as well as your assets and debts. We can walk you through all your options for dealing with debt, from debt management plans and debt consolidation to debt settlement and bankruptcy. We’ll prepare a list of personalized options for you based in your financial goals.
At ACCC, you’ll never feel pressured to choose a certain path for getting out of debt. While our counselors may make recommendations, the choice for how to proceed is always yours. We’ll provide access to free educational materials and financial tools that can help you better understand personal finance, along with information about ways to manage money more effectively and avoid debt in the future.
How debt management plans work
Here’s how debt management programs at ACCC are structured:
At your first meeting with your ACCC counselor, we’ll help you set a budget you can live with. That means you’ll plan to pay something toward your debt each month, but without making unsustainable sacrifices. Next, we’ll establish a plan where you’ll make one payment each month on your debt, sending your funds to your ACCC counselor who will distribute payments to all your creditors on your behalf. With just one payment to make each month, you’ll find it easier to stay on top of your payments. Additionally, your counselor will work with your creditors to try to lower your monthly payment or the amount you owe by re-aging your accounts or seeking reductions in interest rates, finance charges, late fees, and other fees.
With this kind of credit counseling and debt consolidation, you’ll feel less stressed about your financial situation. With credit and debt management help from ACCC, you can finally pay off your debt for good – usually within 3 to 5 years.
Why come to ACCC for debt management?
When you choose ACCC’s debt management plans, you can count on:
- Free counseling and low-cost plans. Your first credit counseling session with ACCC is completely free. And the fees for our debt management plans are among the lowest in the industry. Additionally, we can waive fees in cases of financial hardship.
- Help from certified counselors. Credit counselors at ACCC are professionally trained and certified to help individuals just like you explore all your options for getting out of debt. We can help you choose the path that makes the most sense for you.
- Free educational resources. In addition to credit counseling and debt management, we offer access to free educational materials, financial resources, and financial tools that can help you manage money more effectively.
- Convenient services. You can speak to an ACCC credit counselor in person or over the phone, in English or Spanish. We also offer a convenient online chat feature where you can get quick and confidential answers to your questions.
- Superior customer service. We pride ourselves on offering support and service that are second to none. Our counselors are available to assist you six days a week, and we’ll provide ongoing support and counseling as long as you need it.
- A reputable agency. ACCC is accredited through the Better Business Bureau with an A+ rating, and we are a member of the National Foundation for Credit Counseling (NFCC).
FAQs: What are debt management plans?
What are debt management plans?
Debt management plans are an effective approach to managing and paying off consumer debt. Under a debt management plan, you’ll make just one payment each month to a credit counseling agency who will disperse funds to your creditors on your behalf. The agency will also seek to reduce things like late fees and over-limit fees, as well as interest rates and finance charges.
Why choose debt management over debt settlement or consolidation?
Debt management plans give you a realistic way to pay off your debt over time without taking out new loans, ruining your credit rating, or charging you high fees. In contrast, debt settlement agencies will charge hefty fees and their approach may leave your credit rating in tatters. Debt consolidation companies will ask you to take out a new loan to pay off all debts. Additionally, under a debt management plan, you’ll work to address the habits that got you into debt in the first place. That’s not true for debt settlement or debt consolidation plans. In fact, many consumers who engage in debt settlement or consolidation find themselves in debt again within a few years.