Debt Consolidation Or A Debt Management Plan – Which Option Is Best For You?

Debt Consolidation Or A Debt Management Plan Which Option Is Best For You

?

Debt consolidation could be the solution you have been looking for if you need to save yourself of the harassing bill collector calls. Swimming in mountains of unpaid bills and paying bills late can wreak havoc on your credit score and make it nearly impossible for you to have buying power in the future. If this sounds like the situation you are in, there are ways that you can curb the calls and start digging out of bad debt. Consolidation is a worthwhile option; begin by considering the three simple options laid out for you below.

Debt Management

Make a Debt Management Plan. By going through one of the many credit counseling agencies, you can create a Debt Management Plan that will consolidate your outstanding bills into one manageable monthly payment that is usually lower than if you paid each bill individually. You must choose an accredited counseling agency that is more likely to have strong and reliable relationships with many different creditors. This will also help to ensure their legitimacy. It is important to note that these agencies do offer monetary loans and plans to help you consolidate your bad debt into a monthly payment you can handle.

Debt Settlement

Setup a Debt Settlement Program. This method of reducing debt involves dealing directly with a settlement company who works with creditors to lower your outstanding balance. The settlement company will bargain with the creditors and try to come to an agreement on what amount the creditors will accept. You, in the meantime, agree to put money into an escrow account showing that you are willing to pay down your debt as much as you can, but that the whole amount is ultimately impossible for you to achieve. This path of consolidating bad debt can only be taken if your debt is greater than $10,000.

Secure and Unsecure Loans.

Get Secure and Unsecure Loans. You can achieve freedom from crushing debt by taking on a debt consolidation loan. This loan is usually given at a lower fixed rate and is paid off in one monthly payment. It is somehow working like the balance transfer. This is always a risky method of debt relief because you are ultimately taking on more debt, but you are only paying one creditor--the bank.

POST COMMENT

Credit Card Debt Relief – Tips To Make A Good Credit Debt Management Plan Debt Relief Options – Debt Settlement, Management, Or Bankruptcy? Spa Management Training Takes You Far Time Is MONEY - Stop Wasting It! Use Effective Time and Project Management What Is Supply Chain Management? Debt management via no fax payday loans Can You Define Real Time Driver Management? Don't Be Afraid of Negative Consumer Reviews - Authentic Reputation Management Works BP Crisis Management: Being a good CEO doesn't make you a good spokesperson What Is A Content Management System? Content Management Systems Six secrets of successful property management in India Virtual Management - Need Increases In 2011