Overview of Debt Management Programs

A debt management program enlists the help of a third party management company. You will work with a debt consolidation company or credit counseling agency to consolidate your unsecured debts into one monthly payment. Essentially you will make one monthly payment to your debt consolidation company or credit counseling agency. They will disperse payments to creditors on your behalf. You do not need a good credit score to qualify for a debt management program.

The second debt consolidation solution in our blog series is the Home Equity Loan. Here is a quick reminder of all the debt consolidation options we will cover, and in the order they will appear:

Credit card debt is one of the most common reasons people seek debt help. It is easy to overspend when you aren’t paying cash and you aren’t held responsible for paying immediately. The interest built into this type of credit can add up quickly, especially if the balance isn’t paid in full or on time every month. And because accounts are being managed online it is much easier to overlook or disregard the added interest.