An unsecured debt is one that is not backed by collateral, and includes credit cards, medical bills and student loans.
It is one of several ways you can take control of your debt and reduces the number of payments you make each month and can save you money in interest and fees.
Once you find a credit counselor with whom you’re comfortable, he or she will review your finances and help you create a budget, as well as help you decide whether a debt management plan is right for you.
If you decide a debt management plan is right for you, your credit counselor can help you enroll.
Get Financial Help Now A debt management plan is NOT a loan.
In a typical program, debt management companies work with creditors on your behalf to reduce your monthly payment and interest rates on your debt and waive or reduce any penalties.
Some companies will allow you to retain one credit card for emergency, travel or business use.
The good news is that credit card companies are eager to renew a relationship with you when you complete the program.The parties agree on an affordable payment schedule that allows 3-to-5 years to pay off your debt.A debt management plan is part of the package of debt consolidation plans that are designed to help people regain control of their finances while reducing unsecured debts.There are nonprofit and for-profit companies that offer DMPs.The nonprofits are considered more reliable because their credit counselors are trained and certified by the very respected National Foundation for Credit Counseling.Have all that information available when you call the company.