“How do I pay off debt – fast?” For consumers who are having trouble paying credit card debt and other loans, that’s the question they desperately want answered. For many people, a debt management plan may be the right solution.
What is a debt management program? It’s a way of paying down your debt each month with the help of a credit counseling agency. Here’s a formal explanation:
What is a debt management program?
A debt management program is an approach to debt relief that involves credit counseling. Clients work with a credit counseling agency who, after gathering information about their credit card debts and other debts, speaks to the clients’ creditors and devises a better monthly payment for the given situation.
What is a debt management program designed to achieve?
As you decide which debt relief option to pursue, it’s important to keep the purpose of each strategy in mind. What is a debt management program intended to do? Three things, principally.
- A good debt management plan should help you work at steadily paying down your debt each month.
- It should also help you create and stick to a budget that will let you manage your debt more effectively over time.
- It should simplify your finances by consolidating payments, making it easier to meet your obligation every month and take some of the stress out of owing money.
What is a debt management program at ACCC?
American Consumer Credit Counseling (ACCC) is a nonprofit organization dedicated to providing free credit counseling to people who want to find their way out of debt. Our certified credit counselors can help you evaluate your finances and look at the pros and cons of different debt relief strategies, including credit card debt forgiveness, credit card loans and debt management.
What is a debt management program like at ACCC? When you enter our debt management plan, we’ll help you put together a budget based on your income and expenses that will allow you to pay off a portion of your debt each month. You’ll make that payment to us, and we’ll in turn pay each of your creditors for you. This ensures both timely payment and helps to simplify your finances. It also gives us the chance to be in direct communication with your creditors to propose reductions in interest rates, finance charges and other fees that can help to lower the amount you owe.
What is a debt management program advantage?
As you decide which debt relief strategy makes sense for you, you want to keep the advantages of each in mind. What is a debt management program advantage? The principal advantage is that you’re not taking on new debt and the costs and risks that come along with it. Also, you’ll be addressing the financial decisions and spending habits that helped get you into debt initially. And because you’re working with a credit counselor, a debt management program offers significantly more support than other alternatives.
Contact ACCC to get answers to questions like “What is a debt management program?” as well as “What does a debt counselor do?” and “What is a debt consolidation loan?”