Debt Management Company
Do you know what a debt management company can do for you? Well, you're about to find out.
Total Debt Annihilation
That's what you can expect from a debt management company. Most debt management programs can help you get rid of your debt in five years or so. There are at least five different debt management programs to choose from, but you won't know which one is right for you unless you contact a debt management company. Besides, you can't administer these programs on your own. All the credibility lies with your debt management company. Here's a brief outline of the most basic debt management programs:
- Student loan debt consolidation - This is a debt management solution for people with $10,000 or more in student loans. It combines all of your student loans into one, gives the new loan a lower interest rate (much lower) and cuts your monthly payment amount nearly in half!
- Debt consolidation loans - These are loans given to you to pay off all your unsecured debts at once. Then you pay back the loan. The beauty of it is that the interest rate is so low that you can have the loan paid back in five years instead of the 15-30 it would take you to pay back your unsecured debts on your own.
- Debt settlement - This is for people with access to a lot of cash, just not enough to pay everything off. It gets you reductions of 60-80% off your total amount owed, but you have to pay it off immediately unless your debt settlement company has a program that gives you 1-3 years to do it.
- Debt consolidation mortgages - These are for homeowners. You get a check from your mortgage company for the amount you owe in unsecured debt. Then that amount is added to your mortgage, so you get that same low interest rate (which is more than likely tax-deductible).
- Debt consolidation - This is a program for anyone in debt. A debt management company contacts your creditors to get you reductions in interest rate and balances. Then they combine the new, lower balances, you make one payment to the debt consolidation company, and they pay your creditors. And you can be debt free in five years because of the reductions!
In addition to providing one of these programs for you, some debt management companies also provide (or at the very least, suggest) debt counseling. This way, you can learn how to avoid being in debt in the future and will never have to search for the right debt management program again!
All material copyright © 2008 Credit Counseling Explained. All rights reserved.
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