Financial Resource

Do you feel like filing for bankruptcy because you are drowning in unmanageable debt with high interest rates that you never seem to be able to pay off?

Before you jump into being another bankrupt, let me tell you that there are other alternative options to get you out of debt.

Debt management programs are probably for you.

A debt management plan combines your numerous debt payments into one monthly payment. This means you have one monthly payment to be made to one agency on one date rather than a few payments to be made to different credit card companies on various due dates.

A debt management program is designed to not only help you get out of debt, but to stop harassment from banks, creditors and card companies.

Creditors generally stop calling after they have accepted a proposal or the first payment for repayment through the credit counseling agency.

There are non-profit and for-profit credit management programs.

Call to speak with a certified credit counselor or meet with him to review your options to see whether debt consolidation, bankruptcy or debt management program is appropriate to your circumstances.

If you qualify for a DMP, your interest rates and monthly payments will be reduced, and any late fees or other penalties you’ve been assessed will be waived.

You will make one payment each month to your counseling agency which will distribute the funds accordingly to the creditors.

Regardless of whether your credit score goes up or down in the short term, enrolling in a debt management program is a long term decision, and the fact is repaying your debts is the best thing for your credit rating.

To help you dig out of debt without declaring bankruptcy, which can stay on your record for ten years, a free debt management program is worth looking into.

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