A debt Management plan is nothing but a simple agreement which connect you and your creditor (The business you owe money to). This agreement is made to set monthly payment. These types of plans are made by the companies known as debt management plan providers or operators who interact with your creditor and manage the payment on your behalf.
The payment which is monthly based is depends on you that how much you can afford. This payment then distributed to your creditors respectively. Debt Management Plans are only useful to unsecured debts. Unsecured means there is no involvement of your property in it.
For these types of plans some organizations charge some money and some only provide these types of services at free of cost.
Advantages of Debt Management Plans :
You can get best way to come over through your finance with monthly payment.
If your creditor is a nice person then he might freezother charges and interest on your debt and also do not take other actions like a court case and all that thing.
Give great relax to your mind You come over to your finance without any burden on the mind.
If you are capable to complete this plan then it will give you great relief because your all debt will be clear after this plan.
Disadvantages Of Debt Management Plans :
Your finance must be repaid in full they will not be written off.
All creditors may not want to agree to join a debt management plan and still contact you to make full payment immediately.
Secured properties or mortgage loans are not filled by the debt management plans.