Consolidating debt debt management service
Debt settlement companies charge fees for their service; either a percentage of the debt enrolled or a percentage of the debt forgiven.
In either instance, once monthly payments stop being made to creditors (prior to reaching a settlement), the consumer risks having his/her accounts go into collections.
As you will discover, there are benefits and drawbacks to each.
While negotiating down your debt may seem like a simple and straightforward way to save money, the process is more complicated and consequential than it would first appear.
Bankruptcy is an option for those with burdensome debt loads and not enough income to pay off the debt.DMPs are tailor made for an individual’s unique financial situation and are designed to have one’s debt paid off within five years.Because monthly payments continue to be made to one’s creditors, the accounts will not go into collections.“Credit Counseling will develop an action plan that is tailored to your exact needs,” Rebecca Steele, Chief Executive Officer for the , said.“When you’re in debt, you need to understand your budget, what it’s going to take to resolve your debts and how you can put fair, affordable payments in place to achieve that goal.