What Makes Debt Management Different?
Debt management isn’t your only option when it comes to consolidating your unsecured debts into one monthly payment, but it does offer some distinct advantages you don’t get with other debt consolidation options. The biggest advantage with enrolling a debt management program is it gets someone in your corner to help beat your debt problem. Since you enroll in the program through a credit counseling agency, you get a whole team on your side to help, so you’re not alone in struggling with your debt problems.
You don’t have to keep fighting on your own to overcome credit card debt on your own. Call us at 1-800-320-9929 to speak with a certified credit counselor for free. They can provide a free assessment of your budget and debts to help determine if debt management is right for you. If you prefer, you can get started online now with a Free Debt Analysis and we’ll contact you.
A debt management program is not a loan
One of the main differences between debt management and other debt consolidation options is debt management doesn’t require you to take out a loan. Instead of incurring another personal debt or opening another credit card to try and solve your debt problems, you enroll in a debt management program through a credit counseling agency.
You still get the benefit of reducing your monthly debt payments and lowering your interest rates—just like you would with a debt consolidation loan or home equity loan. However, you don’t take on another unsecured debt as you do with a debt consolidation loan. In addition, you don’t put your home at risk as you would with a home equity loan. Instead, debt management lets you consolidate your debts without a loan.
Debt management doesn’t require good credit
Since you enroll in a debt management plan through a credit counseling agency, getting a good interest rate on your debt doesn’t require you to have a good credit rating in order to qualify. On average, people who enroll in the program generally get an interest rate on their debt between 6% and 10% regardless of their credit history or credit scores. This means you can enroll in debt management even if you have a weak or poor credit rating.
This is a big advantage over other forms of debt consolidation, because most options require you to have a good credit score in order to qualify. When you do a balance transfer of your credit card debt or take out a debt consolidation loan, you have to qualify to get a good interest rate on an unsecured line of credit. In most cases, you need to have strong credit to qualify for an interest rate that will really provide an advantage in paying off your debts. What’s more, if you don’t get the right interest rate, you risk making your debt problems worse with the debt solution you used.
Home equity loans often offer better interest rates than unsecured lines of credit, because you’re putting up your property as collateral in case you don’t pay your debt back. However, while you may get a better interest rate on your loan, you’re effectively putting your home at risk just to pay off your credit card debts. This causes a dangerous situation where if you fall behind in your loan payments, you could lose your home in your attempts to fix your finances.
With debt management, we’re on your side
Still, many of our clients say one of the best things about enrolling in debt management through Consolidated Credit is that you don’t have to feel like you’re alone anymore as you work to overcome your debt. As soon as you call, a certified credit counselor will be on the other end of the line working to help you find a solution to your problems with debt. They’ll assess your budget and review your debts, as well as check your credit report, for free.
If it looks like a debt management plan is the right debt consolidation option to help improve for your financial situation, the credit counselor can enroll you in the program right then, so you can start to rest easier almost immediately because you know you have a plan in place to take care of your debts. While you’re enrolled in your debt management program that first counselor you spoke to will be your personal credit counselor through the rest of your journey out of debt. They can answer any questions you have, direct you to additional financial resources, and help you learn the skills you need so once you get out of debt, you can stay that way.
If you have questions about credit counseling or want to know if debt management is right for you, give us a call at 1-800-320-9929 to speak with a certified credit counselor today. If you’d prefer to get started online, simply fill out our Free Debt Analysis and a counselor will be in touch with your shortly.