“A debt management plan helps you to effectively regain control on your debts by reducing your number of monthly payments and saving your money in interest and fees, making it a better option than debt consolidation loans”.

September 12 2020 by Evelyn john

The magic of owning anything and everything with a swipe is creating more and more people drowning in credit card debt. If you are struggling with unsecured loans and having trouble to pay off your bills every month, a debt management plan might be what you need.

What is a debt management plan?

A debt management plan is the strategic effort to clear the unsecured debts such as credit cards, medical bills or student loans. It is a part of debt consolidation plans that help people regain financial freedom. The debt management companies work on your behalf with your creditors to reduce your monthly payments and avoid penalties. The plan groups your credit card debts into one and creates a well structured 3-5 year repayment plan by reducing interest rates.

Why debt management plan?

A debt management plan comes in handy when you are struggling with revolving debt. It can provide you with a peace of mind and assurance of a debt free future. A debt management plan helps you to effectively regain control on your debts by reducing your number of monthly payments and saving your money in interest and fees. And for sure, the affect of a debt management plan is a lot better than bankruptcy.

Where to start?

If you have decided to go for a debt management plan to strategically pay off your debts, choose a reputable, nonprofit credit counseling agency that provides the best debt management services. They can advise you with the suitable way to deal with debt through debt counseling.
The procedure usually includes a credit counselor thoroughly checking through your financial situation and proposing the best option or plan suitable for your position, whether it may be debt management plan or debt consolidation plan. Think and decide which will be more suitable and comfortable for you.
The plan covers: unsecured debts; debts that are not backed up by collateral’s, such as credit card, medical bills or student loans. It does not cover secured loans.

You can also consult debt consolidation agency to consider alternatives like debt relief loans or debt consolidation loans.

How this helps?

Debt management plans can help you finally put debt behind you. The never ending head ache of paying off credit card debts can be cured with a single and much lower payment. It can improve your life by getting rid of the constant stress and worry about paying off debts. Reduce the continuous phone calls from your phone calls by subscribing to debt management plans

The advantages offered by debt management plans can compensate your restricted budget. This plan can offer credit card consolidation without having to opt for a credit relief loan. If you want to control your spending, living without credit cards and creating new credits can be a great help. With a realistic and structured monthly budget will help you stay more punctual and organized with your bills and payments. Paying debts in regular and timely basis also improves your credit score and enhance your credit report; saving your time, money and reputation.

             When your debt seems overwhelming, debt management plan is not only the option to pay off the liability. Your credit scores may first drop due to less available credit and inactivity of account, but as you handle your finances, it slowly starts to climb up. Plans other than debt management to consider are;

  • Debt consolidation loans: debt relief loans provided by debt consolidation agencies
  • Bankruptcy: getting declared as bankrupt is the best way when the debt is out of control
  • Debt settlement: if nothing works, adapt to the last resort.

If you hate the idea of taking a debt relief loan increasing your bundle of debt to pay off another debt, don’t hesitate to keep aside the little amount monthly through the debt management plan. Make sure you stick to the budget by systematically recording what and how you spend, to save time and money more than you expect. Use these plans to become debt free and attain financial freedom without having to depend on a debt consolidation loan which can save you so much more and achieve the much needed rating and status in life.

Wethinksolutions is a debt consolidation agency in Dubai. We offer debt management services like debt consolidation and debt management plans. From effective debt advice to helping you with our responsible short term debt relief loans, we are the answer for everyone in need.

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