Drug testing

Debt Management - Is It the Right Choice For You?

Debt Management plans offer credit counseling clients a different and new approach to tackle their finances. Finding out if a debt management plan is right for you can take some time. However looking into the pros and cons now will help you know if entering into a debt management plan is right for you.

Pros

Consolidated Monthly Payment ? Debt Management Plans consist of one monthly payment of an individual's credit card debt and other unsecured debt. Instead of several payments that are sent out monthly the credit counseling agency will receive your monthly payment and break it down to individual payments to all of your creditors.

Reduced Interest Rates ? Although some creditors have tightened what they will as far as an interest rate reduction for a client who is working with a debt management plan there are still some credit card companies that will reduce rates as far as charging no interest while on the debt management plan. However that is not the norm so it is reasonable to expect a slight decrease in interest rates and if you receive a larger break in rates that is more of a benefit to you.

Reduced Monthly Payments ? The days of a creditor reducing the monthly payment by half or more seem to be over, however several creditors reduce payments required by several percentage points for a customer of theirs that is enrolled into a debt management plan. This can help free up money to apply elsewhere such as a savings account or a retirement account.

Stopped Late & Over Limit Fees ? This is probably the most beneficial portion of the debt management plan for a credit counseling client who is behind with their payments to their creditors. The average late or over limit fee is about $29 so if you combine that with an average of six credit card accounts the savings on the fees alone could be up to $174 dollars for that example.

Customer Service ? Often overlooked by a person researching a debt management plan that is appropriate for them, customer service means that all of your credit card accounts should be accessible by the credit counseling agency you are working with and any questions you have regarding those accounts should be answered in a timely fashion. A well rounded customer service staff will go a long way as far as assisting you to get out of debt.

Con ?

Accounts Closed - All of your credit card accounts are closed to further charging. This can be initially looked at as a con by the consumer because it takes away their ability to charge, however in the long run this portion of the debt management plan should be viewed as a pro because it allows the client to rely more upon the income they are bringing in and will result in less overall debt that is accumulated while on the debt management program.

Debt management programs offer an array of help with little to consider as negative. The service is designed to assist anyone in need from freeing themselves of the burden of debt. One important factor is that a debt management plan has no negative impact on your credit score. This is according to Fair, Isaac the nation's credit scoring system, also known as the FICO Score.

These are a few points to consider in determining if a debt management plan is the best option for you. Contact an agency to determine if their plan can meet your needs.

Rick Munster is the Media Planner for Debt Reduction Services, http://www.debtreductionservices.com. He resides in Boise, ID. When he is not busy working with the media for his company, he enjoys writing, hiking and finding a good place to drop a line and do a little fishing.

limousine chicago service
In The News:

Should You Join a CCCS - Consumer Credit Counseling Service for Debt Relief and Financial Freedom?

Do You Need to Join a CCCS - Consumer Credit... Read More

New Bankruptcy Legislation May Make it Harder to Find an Attorney

The recently passed Bankruptcy Abuse prevention and Consumer Protection Act... Read More

Student Loans Can?t Be Swept Away Through Bankruptcy

Bankruptcy is in the news these days, as Congress has... Read More

Debt Collectors: Men or Mice?

Who are these people anyway? They viciously harass you and... Read More

Use A Debt Checklist To Examine Where You Are

A Debt Checklist allows you to look at items and... Read More

Reducing Debt Before Its Too Late - How to Avoid the Pitfalls of Creeping Debt

Reducing debt usually isn't a high priority for people until... Read More

The Bankruptcy Code Acknowledges the Validity of the Homestead Exemption

Many times the subject of bankruptcy seems baffling in its... Read More

The Last Debt Solution Should Be Bankruptcy

A debt solution like bankruptcy should really only be used... Read More

Credit Repair? Its All Up to You

Log onto to a search engine such as google.com and... Read More

Are You Beating Up On Yourself About Debt?

When you hear the word "debt", whats the first thought... Read More

Do It Yourself Debt Relief

With mounting bills and unforeseen hardships, you may be considering... Read More

Reduce Your Debt

Do you want to reduce your debt? Having trouble paying... Read More

Deal with All Your Debts with Care!

Lots of people take a large ammount of loans and... Read More

Bankruptcy: What the New Law Means to You

On April 20 of this year, President Bush signed a... Read More

Out of Credit Card Debt - Without Filing Bankruptcy

To be out of credit card debt is your dream... Read More

Bankruptcy Abuse

Bankruptcy is little more than a smack on the hand... Read More

Utah, the Nation?s Bankruptcy Capital

Congress recently passed the Bankruptcy Abuse Prevention and Consumer Protection... Read More

Bankruptcy - The Easy Option?

Incredibly, since the changes in the bankruptcy law in April... Read More

How to Protect Yourself: Debt Collections

So you are getting collection calls? You're desk is full... Read More

Debt Free and Carefree

Are you still clearing a mountain of debt amassed last... Read More

The Credit Card Debt Termination Scam

"Legally terminate credit card debt! You can be debt-free in... Read More

Should You Invest In Savings Or Payoff Your Debts?

I have faced this financial question 8 years ago and... Read More

Bankruptcy - Your Fresh Start

Most American consumers are living too close to the edge.... Read More

How To Pay Credit Card Debt Off

If you are determined to pay credit card debt off... Read More

Ten Ways to Get Out of Debt

1) Use your AssetsIf you have assets with some significant... Read More

commercial lighting fulham induction lighting Pete's produce ..