Debt, especially large amounts of it, places a huge mental and emotional strain on anyone suffering from it. On top of that, debt can prevent you from accessing financial opportunities to help you get ahead, like buying a car or a home.
Because of these things, it’s important to pay off your debts as soon as you can. However, if you’re still having trouble, debt management and debt consolidation are options that may be helpful for you.
Here are four things you need to know about debt management, straight from the experts at DebtHelp, Inc.
1. You may have to close your credit card accounts
As debt management companies negotiate terms with your creditors, part of your terms may include closing down your current credit accounts to prevent yourself from going even further into debt. If you don’t, you may forfeit the contract you made with your creditors.
In many cases, this also means that you can’t take out any new loans or open up new lines of credit. So when you begin a debt management plan, make sure you don’t plan on taking out a loan to buy a car, for example.
2. Your debt management company may be able to waive some of your fees and lower your interest rates
In order to make repayment less of a burden for you, your debt counselor may be able to negotiate slightly better terms for you. This includes waiving some fees that come with paying down your debt, or lowering your interest rates on your open accounts.
Over time, you’ll find that these concessions can help you save hundreds or even thousands of dollars that you can now put towards paying down your debt.
3. You can usually expect to make only one payment every month
This process, known as debt consolidation, combines multiple debt balances into one. In addition to making the repayment process easier, oftentimes debt consolidation has the added effect of lowering your interest rates too (as discussed in the previous section).
In this case, your monthly payment would go to your debt management company, who would then distribute your funds to each of your creditors themselves. This means you don’t have to keep track of several due dates every month, which can take some of the mental strain of paying down your debt off of your shoulders.
4. Following your debt repayment plan guarantees you get rid of your debt
When you make a plan to pay off your debt by yourself, you’re the only person keeping yourself accountable. Additionally, because there are so many moving parts involved, there’s a chance of making a miscalculation, which could mess up your entire timeline.
However, with a trustworthy debt management company, your debt repayment plan is laid out for you in plain and simple terms. All you have to do is follow it and make your monthly payments on time. In a few months or years, you’ll be free from your debt!
Get in touch with DebtHelp, Inc. today
When you need a way to settle your debts quickly, turn to the financial professionals at DebtHelp, Inc. for debt relief and debt consolidation programs you can trust. In addition to debt consolidation plans, we also offer debt management tips to help support you on your journey to financial freedom.
If you think debt management or debt consolidation plans may be right for your financial situation, contact us using the form on our website to learn how DebtHelp, Inc. can help you. Otherwise, if you have any pressing questions or concerns about our services, you can contact us directly by calling (888) 254-4516.