If you're overwhelmed with credit card debts and are struggling to make your payments due to high interest rates or late fees, you might be interested in finding out how much you can potentially save by consolidating your debts through a debt management plan. Known also as a "DMP," a debt management plan (or debt consolidation) generally allows consumers to combine their high-interest debts - such as credit cards as well as other types of unsecured debts like medical bills, utilities, or department store charges - into a single, more structured, and more manageable payment plan made to a credit counseling agency. With a more structured and more affordable repayment plan, the aim is that consumers in debt can direct more of their payment into paying the principal of the debts versus just the interest, thereby reducing debts at an accelerated pace.
Debt consolidation, however, is certainly not the only option available to consumers who need debt relief. For consumers with typically higher balances on their credit cards (generally $20,000 or more), debt settlement is a popular option because it allows consumers to negotiate with their individual creditors in hopes of paying a substantially reduced amount of what they owe. Because of the potential to get savings and lower debt amounts, depending on a consumer's debt level, both debt management and debt settlement are increasingly becoming popular debt relief options among consumers who want to avoid bankruptcy, which has a more damaging and longer lasting impact to one's credit score.
To find out if you qualify for debt relief and see how much you can save, answer a few, simple questions online. It only takes minutes to complete and you will get a free debt relief analysis and savings quote. Begin now.
What to Expect with Consolidation
When you enroll in a debt consolidation or management program, credit counselors will review your financial situation and determine how much money you can allocate to paying off your debts. Aiming to provide you with a more lenient payment plan, they will submit proposals, on your behalf, to creditors asking for benefits like:
- reduced interest rates
- waiving of late fees
- elimination of penalties
Creditors who accept the proposals are added to the debt management plan. You, in turn, will be provided with a more structured and more manageable plan that allows you to pay your debts at a pace that you can afford.
Get Help from the State
If you are experiencing tough financial times, the state of Missouri has several programs designed to assist you with basic necessities like food, health care, child care, or assistance with finding employment. The state's Temporary Assistance program, for instance, is geared to needy families with children. It also has programs designed to address housing concerns, such as assistance with paying your mortgage or avoiding foreclosure, administered by the U.S. Department of Housing and Urban Development. For more information, visit the state's official site at www.mo.gov.
An Easier-to-Manage Debt Plan?
When you're dealing with debts spread across different credit cards as well as unsecured debts, keeping track of how much you owe, due dates, and interest rates can be overwhelming. And, if you're unemployed or are experiencing personal hardships, dealing with debts becomes even more of a challenge. That's why for many consumers, a debt consolidation or debt management plan has become a popular debt relief option because it can provide a single, more manageable, and more structured payment plan.
The bottom line is, if you are overwhelmed with debts, debt relief might be able to help. Based on information that you can get from your free debt relief analysis and savings estimate, you can explore your options, see how much you can save, and find out how long it will take for you to pay off your debts. Answer a few, simple questions online to begin.