Rising interest rates, making multiple payments to a variety of lenders, and calling creditors can leave you feeling exhausted, anxious, and hopeless. Considering a debt management plan may be the best way out of this mountain of debt, helping you climb toward a more sustainable future.
Why? They work! Debt management plans help you pay off your debt fast, and without incurring a possible 10-year penalty if you declare bankruptcy, or worse, default on your loans and let your credit score take a beating.
How does it work? When you meet with a credit counselor, they will go over your unsecured loan debt, which includes credit card debt, private loans, and medical expenses. From there, they will put on their expert certified credit counselor hat and work with creditors to not only knock down your interest rate, which can significantly reduce the amount you have to repay, but they will also work out a monthly payment that is affordable for you. Working with financial professionals will give you the sound guidance you need as well as the confidence that you’re in good hands. Sound good?
There’s more. Debt management plans are designed to be paid off within three to five years so that you’re able to climb out of debt more quickly and efficiently, without the constant phone calls from creditors. During this time, you should only use credit cards for emergencies. According to ValuePenguin.com, about 41% of households carry revolving debt -- so you’re not alone in your struggles. Hopefully, by the end of your repayment, you’ll learn to live off less, embrace healthier financial habits, and continue to climb new mountains that have nothing to do with debt. Wiping away credit card debt through a debt management plan can truly give you the sense that you have achieved a new lease on life.