";
Repair Bad Credit - The Tremendous Benefits Of A Debt-Management Plan

by: Michael Saunders

For about 25 percent of those who turn to credit counselors to fix bad credit, more than advice is prescribed. In these cases, in addition to an action plan, a debt-management plan is recommended. A debt-management plan (sometimes called a debt-repayment plan) involves the agency as an intermediary (for a small monthly fee it handles both communications and payments on your behalf) and it includes revised payments that:

A) Are acceptable to all your creditors.

B) Leave you enough money to handle your living expenses.

C) Generally get you out of debt in two to five years.

Such plans include: an alternative to bankruptcy, debt consolidation, or an interest-rate-reduction plan. All these descriptions have been attributed to debt-management plans. In fact, debt management plans offer all these benefits - and perhaps a lot more. Here's how: When creditors realize that you can't meet the original terms of your credit cards or other loan agreements, they also realize that they're better off working with you through your credit counselor. Under a debt-management plan, your creditors are likely to be open to a number of solutions that will be to your advantage. These include:

A) Stretching out your payments so that the combination of principal (the amount you originally borrowed) and interest will pay off your balance in 60 months or less.

B) Changing your monthly payments to an amount you can afford to pay.

C) Reducing your interest rate and/or any fees associated with your loan.

D) Stopping creditors from hounding you day and night.  (continued...)
Repair Bad Credit - The Tremendous Benefits Of A Debt-Management Plan
  Page 2

About The Author

Michael Saunders has an MBA from the Stanford Graduate School of Business. He edits a site on Credit Repair and Debt Consolidation and is president of Information Organizers, LLC.




Social Entrepreneurship
Spotlight



This Social Innovation Helps Prevent Bed Sores in Wheelchair Users


This Social Innovation Helps Prevent Bed Sores in Wheelchair Users

Co-founders William Mann and David Mravyan devised the Sensimat during a mandatory project for their MBA at the Richard Ivey School of Business in Canada. Sensimat is a device that helps manage and assess pressure among wheelchair users.




Social Services Jobs in Wisconsin

  Substance Abuse Jobs
  Foundation Related Jobs
  Social Work Jobs
  Substance Abuse Jobs
  Fundraising & Development Jobs



Federal Government Grant and Assistance Programs



Edited by: Michael Saunders

© 2008-2019 Copyright Michael Saunders
Click here to open the popup

Never miss an update from Papermashup

Get notified about the latest tutorials and downloads.

Subscribe by Email

Get alerts directly into your inbox after each post and stay updated.
Subscribe
OR

Subscribe by RSS

Add our RSS to your feedreader to get regular updates from us.
Subscribe