If you decide to relief your debt, start by choosing an agency of credit counselling service. Choose the right one, because you deserve the best.
Debt negotiations might sometimes get you on your nerve. In such a situation, it is better to consider a debt settlement and management plan which is best suitable for you. If you decide to relief your debt, start by choosing an agency of credit counselling service. These personal credit counselling services have helped a lot of people to settle their debts on their own. Check the agency’s accreditation and certification, the accessibility and of course the cost.
What Is a Debt Management Plan?
A debt management plan is dealt with a third party whose main aim is to help the customers pay their debts on their own. The counsellor may advise you several options out of which you can choose as per your understandings and needs. It is a great debt tool to use in crisis as well as in normal times.
Before you go further in details, here are a few things you must keep in mind beforehand: –
- Do not get caught by the ‘Non-profit’ tag and go for Accredited Debt Relief instead.
- Try and negotiate with your creditors before opting a plan.
- Your credit score might alter, so don’t worry about that.
- You must prohibit giving new credits.
- Be patient and wait for some time to see its effects.
- The interest rate falls and fees will be waived off, with one monthly payment, etc.
- Pros –
a. Fess waiver
b. Single monthly payment instead of multiple payments.
c. Comprehensive financial advice
d. Fast process of debt relief
e. Concession make it easier.
- Cons –
a. Enrollment and plan fees.
b. Only for unsecured debts.
c. Behavioural change required
d. Other solution might provide better options.
Types and Agencies
It includes –
- Debts in collection
- Medical bills
- Unsecured loans (including personal)
- Credit card debt
- Consumer proposal service
However, it doesn’t include auto loans, mortgage loans, federal students’ loans etc.
How to Choose A Debt Management Plan?
Consider these points to find the perfect fit –
1. Check the availability of the services in your area.
2. Make sure you have the necessary minimum debt requirement fulfilled.
3. Do a cost vs. saving the analysis.
4. Ensure the accreditation of the agency.
5. The time frame and transparency must be looked upon.
6. Check customer ratings and satisfaction.
Data management and settlement plans are the best medicine for debts relief. However, other alternatives like bankruptcy loan, debt avalanche, debt consolidation loan, etc. can also be opted. With Credit720, you can compare the plans shortlisted, select the best according to your debt and avail the benefits of financial guidance.