Debt Management Services

When Should You Consider a Debt Management Plan?

First, let’s talk about what a debt management plan is. A debt management plan will consolidate credit cards into one, easy monthly payment, and is offered to individuals by a credit counseling agencies. You simply contact an agency and speak with a credit counselor. The credit counselor will ask pertinent questions regarding your personal finances including what is your income, the amount of debt you owe, how many credit cards you own, etc. Then determine whether or not a debt management plan or other debt relief option will work for your financial situation.

The benefits of a debt management plan become apparent after the credit counselor speaks with your creditors. The credit counselors consolidate your credit cards by contacting your creditors and negotiating a payment plan which is manageable for you. Other advantages of consolidating your credit cards may include: reduced fees, canceled penalties, and lower interest rates. The payments are made to the credit counseling agency, and the agency makes the payments to the creditors each month.

Many creditors view enrolling in a debt management plan as a positive – the person is making a planned effort to solve their debt problem. The credit counseling agency also provides clients with meaningful guidance on the proper way to use credit cards, generating a budget, paying bills on time, and managing their personal finances to promote financial health. their personal finances to promote financial health.

What are the warning signs that you need a debt management plan?

Now, after digesting this information, it’s time to figure out whether or not you should consolidate your credit cards. You should consider a debt management plan if you:

• Can't pay the minimum payments on their credit cards;
• Are consistently late paying on one or more of their regular bills;
• Are being hounded by creditors and debt collection agencies;
• Have tried credit card negotiation with creditors and failed to reduce your debts.

If one or more of the scenarios listed above matches your financial situation, then you’ll want to contact a credit counselor to discuss consolidating your credit cards. Whatever you do, don’t procrastinate. If you need help you should act immediately, because if you become too overwhelmed by debt, a credit counseling agency may not be able to qualify you for a debt management plan.

How fast does a debt management plan get rid of credit card debt?

A debt management plan does not work miracles and it will not wipe your credit card debt out overnight. It usually takes people a large period of time to build up their debt, and it might take longer to make it go away. The typical debt management plan takes 36 to 60 months to complete. Responsible credit counselors will not recommend a debt management plan if it will take more than five years to eliminate all the debt.

Don’t Wait to Consolidate Your Credit Cards

Contact Consolidated Credit Counseling Services by calling 1-800-320-9929 to find out if a debt management plan is right for you. Our certified credit counselors will review your personal finances, and match you with the debt relief option that best fits your financial situation. We’ve helped over 5 million people save thousands of dollars on their credit card debt. We can help you.

Start your credit counseling session online, it’s quick and easy.