Outstanding credit card balances comprise a huge problem for today’s consumers. Consumer debt doubled between 1995 and 2005, and so have the number of existing agencies to help people pay off what they owe. Debt prevention and management services are a thriving business intended to relieve stress and pressure on those whose debt has spiraled out of control, and help get them back on the right track.
What are Debt Management Services? Debt management programs are designed to help people who may be able to pay back their debt over time, but are having trouble getting a consolidation loan or who do not wish to pursue debt settlement. Debt management companies amass all of your credit cards, loans, and other unsecured debts and combine them into one monthly payment. The debt management service then pays each creditor, usually taking a nominal percentage in commission.
In order to settle up your accounts, a debt management service will contact all of your creditors to arrange lower interest rates and reduced charges whenever possible. Some services also offer credit counseling and other programs to help you achieve financial stability.
Types of Debt Management Services Debt management is not the same as debt settlement or debt consolidation. It differs from debt settlement in that it does not change the amount of the debt owed – but instead restructures the existing debt payback schedule. Creditors may agree to lower interest rates on the debt to facilitate repayment. Debt settlement involves negotiating to pay back only a portion of a debt (rather than declaring bankruptcy and paying nothing), and debt consolidation loans allow you to combine several debts into one new loan at a lower interest rate. Both of these programs result in the creation of new payment terms. Debt management, on the other hand, enables you to pay back all or most of your existing debt without taking out a new loan, with a new intermediary helping you keep track of the payments.
Most debt management programs will offer credit counseling services, helping you create a new budget and spending plan to prevent you from sinking back into debt again. Others leave the budgeting process up to you. The common factor in all debt management services is that they receive one large monthly payment and break it down into smaller payments to disperse to each creditor or lender.
Advantages and Disadvantages Debt management services are a practical way to simplify your finances for easier management of a large number of debts. They relieve you of some of the burden of by managing the payment and distribution of your credit card and loan payments.
Because it’s critical that all payments are dispersed to creditors in a timely manner, it’s wise to be very selective in choosing a debt management counselor. It’s a good idea to compare the rates and services of various providers to ensure that you’ll find the arrangement that best suits your situation. Some debt management programs may take a percentage of each payment, while others charge additional fees.
Generally, this service is reserved for unsecured debts, like credit cards and personal loans. Debt management is rarely used on secured debts like mortgages and car loans.
Debt management programs can have a negative impact on your credit. Any changes to your loans or credit card debts that are negotiated by a debt management company can potentially appear on your credit history, and may be looked on unfavorably by future lenders. These marks on your credit, however, are generally less significant than missed or late payments, and definitely less harmful than debt settlement or bankruptcy.
Debt management is on of the most popular debt solution in the UK with over 500,000 believed to be in a plan. Find out more about debt management as a potential solution to your debt problems. Video Rating: / 5
Credit Card debt is so toxic but this video will show you how to get rid of it for good! I will be doing lots of these types of videos and give you more ideas as to how to get out of debt and stay out of debt.
If you have any feedback or special requests, I am always here to help! So make sure you subscribe and I cannot wait to share more valuable information with you…your future is going to be so much better!
Don’t forget that you can follow me on Instagram @SugarMamma.TV and like us on Facebook!
Outfit in this video and similar items:
ASOS Origami Top with Tie Waist: http://rstyle.me/n/cbexksb9bi7
Forever21 Boxy Woven Top: http://rstyle.me/n/cbex2hb9bi7
Seed Luxe Oversized Tee: http://rstyle.me/n/cbex4vb9bi7
T by Alexander Wang Short Sleeve Scoop Neck: http://rstyle.me/~9qOTa
Jenni Kayne Short Sleeve Scoop Neck: http://rstyle.me/~9qOVt
Salvatore Ferragamo Scoop Neck: http://rstyle.me/~9qOVy
Jil Sander Scoop Neck: http://rstyle.me/~9qOWM
Please remember to shop consciously!
http://youngmomsclub.com So let me tell you about how my ex-husband completely screwed me over and how I learned the fastest way to pay off debt.
When I was 15 I bought my first car (cash). I had worked under the table since I was 14 to save up for it. I was so proud.
Fast forward a couple years to when I found myself pregnant at 17. I realized I needed an even better car than I had, one that was safer and would last but I had no savings, so my dad co-signed for me for a ,000 personal loan. I sold my old car and used that money to buy an older, but reliable, Honda Accord.
Around this same time, I took out a ,000 school loan.
Then I had my first pregnancy and baby. There were major complications with her and even though I had great insurance, I was left with ,000 in medical bills.
Right after that, I married my soon-to-be ex-husband. If you’ve followed my story so far, then you know what a huge douche he turned out to be.
He got a credit card and maxed it out for ,000 from buying all sorts of stupid stuff (video games, movies, who knows what else). My name wasn’t on the thing.
In one of his attempts to buy back my love after his affairs, he went out and got me a new car, an SUV that I loved. He started driving the Honda, that had my name on it.
Months later after trying to work out our marriage and him cheating, yet again, I took off with the kids and the SUV and started our new life.
While in the process of divorce, we mutually agreed that he would keep the Honda and we would switch the SUV into my name.
While literally waiting at a red light, on the way to the court house, someone crashed into me and totaled the SUV.
We had already paid off ,000 of it and all of that insurance money went to him, because it was still in his name. Of course I didn’t see a penny of it.
So I had to go out and get a new car. I didn’t have any money to put down so I took out a ,000 car loan.
THEN I find out that douchehead had never actually put my old Honda in his name, and that he had crashed it into a palm tree and left the scene. Since my name was still on the registration the cops were looking for me for a hit and run.
I immediately went down to the station, explained the situation and cleared my name but the car had been towed and sat in impound for weeks and had occurred almost ,000 in impound fees.
If you haven’t kept up so far, I was ,000 in debt so far at the age of 20.
After my divorce finalized, I sought advice from a credit expert and paid off almost all my debt within a couple years.
If I had just gone at it blindly, I would’ve thrown a lot of money away, like most people do.
In today’s video I’ll share with you the super easy way to pay off debt, and how to avoid the 1 mistake a lot of people make, which wastes their precious money in the process. Video Rating: / 5
Many people are looking for the best debt consolidation company to get rid of a distressing debt burden. The best debt consolidation company is the one that can help you comfortably pay off all of your debts in order to improve your credit scores. The best debt consolidation company will be able to advise you on the best debt consolidation product for your needs.
If you have a large amount of debt, or if you are having trouble making the minimum monthly payments on time, then you need debt consolidation. Both of these items cause you to have a low credit score. You want to seek debt consolidation with the best debt consolidation company to relieve the stress of carrying high balances on your credit cards and to raise your credit scores.
Debt consolidation is offered by many companies. The debt consolidation counselor will be able to help you review your income and expenses and establish a budget. They will help you obtain debt consolidation, a consolidation loan, or debt settlement so that you can pay off your debts.
If you do a search online, you can find the best debt consolidation company. Visit their website and complete a form for a free debt consolidation quote. The best debt consolidation company will have a counselor call you and let you know the best program to help you become debt free.
You must select the best debt consolidation company in order to get out of debt. The best debt consolidation companies will know how to negotiate with your creditors and lenders in order to obtain the lowest interest rates available for a debt consolidation program. They will be able to get your fees reduced or eliminated. If you are seeking a consolidation loan for your accounts, they will help you get a loan with the best possible rates and payment term so that your monthly payments will be affordable. Sometimes you will want to obtain debt settlement in order to become debt free, and the best debt consolidation company will have good rapport with the financial institutions so that you can obtain the best settlement offer in order to get your loans paid off.
With debt consolidation, a consolidation loan, or debt settlement you can pay just one affordable monthly payment and free yourself from the hassle of paying multiple installments to different creditors. At the end of the debt consolidation term, you will be debt free. It is important to learn to follow a budget while you are in debt consolidation so that you do not fall into the debt trap again and need debt consolidation in the future.
Be careful to read the paperwork that you receive from the best debt consolidation company. You will want to review the interest rates, closing costs, and term of the consolidation program to make sure that you understand the entire process.
Since you do not want to live with the stress of debt, the debt consolidation company will also be able to help you find where you can cut your expenses and start saving money. You will need to avoid using your credit cards, so save one for emergencies and cut up the rest. The best debt consolidation company cannot keep you out of debt if you continue overspending. If you do work follow the debt consolidation plan and learn to live within you means, you will be able to live debt free.