Setting Up A Debt Management Plan

In the U.S., a debt management plan offers effective strategies for settling debts. The opportunities start with a complete assessment of all existing debts. A debt management consultant provides personalized debt management plans that address all debts more effectively.

Calculate the Total Volume of Debt

The consumer starts by calculating their total level of debt. Next, calculate the total amount paid each month for the debts. When creating a debt management plan, a consultant looks for options that reduce the total amount paid each month while continuing to pay all debts.

Determine When Settlement Offers are Possible

Select debts are eligible for debt settlement offers. For example, unsecured credit card accounts require the consumer to pay a set amount each month based on the balance. However, by paying the minimum payment, it takes years to pay off the accounts. A debt management consultant negotiates with the creditor and determines if a settlement offer is available. If so, the consumer has the option to pay off the debt without incurring additional financing fees and interest.

Secure Debt Consolidation Loans

Debt consolidation loans are secured to pay off several creditors at once. Once approved, the consumer makes arrangements for the funds to be transferred to the creditors. A receipt is provided for each debt that is paid. It is also possible for the consumer to have negative listings removed from their credit report immediately.

Paying Off Additional Debts

A debt management consultant helps consumers create a plan for paying off any additional debts that weren’t included in debt consolidation. The plan is often based on a budget created to save money and cut down on spending. The consultant shows the consumers how to use the budget to settle the debts more proactively and manage all monthly expenses.

In the U.S., a debt management plan is set up by reviewing strategies to settle debts. The plan includes debt consolidation when possible and introduces consumers to negotiation strategies for obtaining settlement offers. A debt management consultant helps consumers create a plan that addresses the mismanagement of debts proactively. Consumers who want to start a plan are encouraged to contact a great company right now.