Handling Debt on Your Own
If you are disciplined enough to develop and stick with a budget
and payment plan, you may be able to correct your financial situation on your own.
We have researched self-guided repayment plans, discovered the
art of carefully planned balance transfers and developed
strategies to
reduce
interest rates. If you are already
falling behind on payments though, you may need additional
assistance.
Managing debt can be a challenge, especially
when you begin falling behind. Many people find it difficult to
stop using credit cards. The first step though is to see if you
can get by without using credit. If not, you may need to seek
help immediately.
Using a Debt Management Plan
A structured
debt
management plan (DMP) can be designed by a credit counseling
agency to help you regain control. Credit Counselors have
established relationships with many creditors which can bring
benefits to help you. A credit counselor serves as a liaison,
representing you and the creditor, so that a compromise on
payment amounts, interest rates and fees can be reached.
Repayment through a debt management plan can improve your
damaged credit over time and it can help you avoid the negative
effects that
debt
settlement,
judgments and
bankruptcy
have on your credit score. A DMP can help you eliminate credit
card debt in less than 5 years. Benefits of a DMP can include:
- Reduced, consolidated monthly payment
- Late and over-the-limit fees waived
- Reduced interest
- Re-aging of past due accounts to reflect
current status
- Faster repayment of total unsecured debt
DMPs do not include secured debt, such as
mortgages, auto loans or title loans. Collection accounts and
medical bills can normally be added, but the benefits are rarely
as generous as those normally provided by most creditors.
We recommend the following credit counseling
organizations that we understand to be in good standing:
Search for
agencies
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