Debt Management Plan

Debt management plans offer a structured repayment of your debt whether chosing debt relief with a chapter 13 bankruptcy or consumer credit counseling. Find out what restructuring and re-payment plan is the best for your situation. Let's face it...some people just do not have the discipline to create a budget and stick to the plan. Debt management plans offer a path for repayment that your creditors are in favor of. In some cases with consumer credit counseling, creditors will lower your interest rates as long as the recognize credit counseling organization you signed up with. You need to know that not all "nonprofit," debt management companies are recognized by creditors, so there will be no guarantee that the creditors will accepts the repayment plan in this scenario.

Most credit counselors offer services through local offices, the Internet, or on the telephone. If possible, it probably best to find an organization that offers in person counseling. Many universities, military bases, credit unions, housing authorities, and branches of the U.S. Cooperative Extension Service operate nonprofit credit counseling programs. Your financial institution, local consumer protection agency, and friends and family also may be good sources of information and referrals. Trustworthy credit counseling organizations can advise you on managing your money and debts, help you develop an affordable budget and offer free "avoiding debt" literature. In most cases, these credit counselors are certified and trained in the areas of credit, financing and debt management.