If you are looking for help with getting your finances in order and paying bills off quickly then a well-designed debt management program can help. There are many ways that someone’s credit can get fixed it depends on the debt that you have and your income. This program is for an individual that has high-interest debt as well as a steady stream of income. Meeting this criterion will allow them to partner with a debt management company to create a better budget for themselves.
It is essential to ask yourself the following questions, to decide if you should work with this type of company.
“Do I need my credit card? Can I get rid of it?”
“Can I do this on my own or do I need someone to help me?
“Are there any big purchases I will have to make this year that I will need credit for?”
“What will my duties be?”
The debt management company will negotiate deals on your behalf and it will require you to give up new credit. Applying for a new credit card or loan would show that you genuinely aren’t interested in climbing out of debt.
Process for Enrolling into the Debt Management Program
Enrolling in a program could take up to a month. There are negotiations that have to made and repayment plans need to be established. You will most likely get a late mark or more on your credit report during this time. The reason for this is because you probably can’t make payments for both the program and to your creditors.
If creditors begin to call you can let them know that you are enrolled in a debt management program. This should keep them from continuing to call you.
If you have too many credit cards and would like to make one payment then you should consider debt consolidation. Using a debt consolidation company could be beneficial. This is very useful for some in managing their debts. The requirements for consolidation differ for each company. They most likely will want to see that you owe at least $5,000 in unsecured debts.
