Types of Debt Management Programs
A debt management program is a formal agreement between an unsecured lender and a borrower that resolves the terms of a pending debt. This most commonly refers to an individual finance solution of people resolving high consumer debt within a debt-shortening context. There are many credit management companies in Gilbert. Two debt relief company in Gilbert are Credit Management Solutions of AZ and Consumer Credit Counseling of AZ.
Frequently Asked Questions (FAQs) about debt management program. When should you contact your credit card company? Should you stop making payments to your accounts?
How do debt management services help you reduce your bills? How do debt management services help you manage your monthly expenses? What is the difference between debt management and debt consolidation? Do I qualify for debt consolidation? Can I lower my debt ratio with debt management? If you are looking for debt relief in Gilbert, you may be interested in these and other questions about debt management.

Credit counseling programs are a debt management solution that consists of financial planning services and professional negotiating skills. When you enroll in credit counseling you will be assigned a debt management counselor who will meet with you monthly to discuss your debt situation and explore options to consolidate your outstanding obligations including, lower interest rates, re-aging of payments, payment consolidations with reduced balances, or other debt management services. Your credit counselor will review your financial information and review the options that are available to you based on your unique debt management needs. If you are enrolled in a debt management program you will make one or more payments directly to your debt management company. You will be e-mailed or phoned a monthly payment amount that can be used to pay your outstanding debts like credit cards and personal loans.
Debt consolidation is another debt management program offered by several credit card debt management programs. When you enroll in this debt management program you will be assigned a debt consolidation company that will work with all of your lenders to reduce interest rates, eliminate any late fees and penalties, and reduce overall balances on your outstanding accounts. You will make one monthly payment to the debt consolidation company and they will distribute it to your individual lenders according to the terms negotiated with your lenders. With this type of debt management program, your credit score will not be negatively affected and you can still keep your credit card account open.
Debt settlement is debt management that eliminates debt completely by negotiating with creditors to settle debt for less than the amount owed. You may think debt settlement is a debt management program, but it is different in that the settlement amount is reached after the debt management company has negotiated with your creditors. In most cases, debt settlement is done through a debt settlement attorney who is paid by the debt consolidation company. Debt settlement is a good debt management option if your debt balances are more than 10K dollars or if you have few debt accounts and/or very low interest rates.