Simplified payments and very low interest rates, along with additional guidance
Can you create a debt management plan on your own?
There are several ways you can manage debt on your own, including negotiating a settlement with your creditors, or creating a repayment plan yourself and following a systematic approach to paying off your debts. However, it can be challenging to put together a debt management plan by yourself.
What do you get when you sign up for a debt management plan?
When you decide to seek professional help, a credit counselor reviews your debts, income, and budget to determine if you are a good candidate for a debt management plan. If you qualify and decide to enroll, here’s what you will receive when you pay for a debt management plan:
Why do debt management plans fail?
Debt management plans can provide structure and reduced costs for repaying debt, but these programs are not 100% guaranteed. Half of the consumers who enroll in debt management plans fail to complete the entire program. Some of the most significant reasons include funding depletion and unexpected financial obligations.
Is a debt management plan right for you?
A debt management plan may be a good option if you:
- Have high credit card debt with high-interest rates or significant medical costs or accounts in collections
- Are dealing with multiple monthly financial payments
- Have enough money to pay the setup and monthly fees for the financial advisory agency or qualify for a debt management plan fee waiver based on your income or being military
- Have a reliable source of income
- Are willing to make significant adjustments to your monthly budget
- Can stick with it
If you don’t meet these requirements, you may need to consider other options, such as debt settlement or declaring bankruptcy.
Source: https://www.thebalancemoney.com/what-do-you-get-with-a-debt-management-plan-5188281
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