What types of people are best suited for a debt management plan?

The Types of People Best Suited for Debt Management Assistance

By DebtHelper.com  

DebtHelper.com is an IRS Approved 501c3 Non-Profit Florida Corporation dedicated to our mission to educate, advise and empower youth to seniors to handle debt, credit and housing and to provide affordable housing opportunities through the acquisition and rehabilitation of residential properties.

 

Are you struggling with credit card debt? It may seem as though you pay your credit card debts, but the balances never seem to budge. Often credit card debt has nothing to do with someone’s spending patterns, and is instead the result of extended unemployment, divorce, an accident or long-term illness. A Debt Management Plan can help many to determine the best course of action, and regain a firm financial footing. Whether the final result is adjusting your household budget, debt consolidation, or bankruptcy. There are many options available.

If you are wondering if a Debt Management Plan could help, consider the following:

Signs that you may need assistance

There is a certain type of person that is best suited for a Debt Management Plan. These individuals struggle to make minimum payments, but may not see their balances going down. Another sign could be that they miss making credit card payments, or pay them late and suffer the penalty.

If you find yourself unprepared for unexpected emergencies, such as car repairs, you could be a candidate for a Debt Management Plan. People that write checks for necessary expenses and hope that the check doesn’t clear until the next payday may also find a Debt Management Plan helpful.

Believe it or not, it is possible to save money and a Debt Management Plan may be able to help you find ways to tuck a little savings away.

Obstacles to getting out of debt

There are some barriers to pulling yourself out of credit card debt without help; the charges and fees asserted by credit card companies can inflate the balance on credit cards. This may result in consistently being over your credit limit and paying additional surcharges on these fees. It is like taking one step forward, and then two steps back.

Other obstacles to getting out of credit card debt could be life in general. A financial crisis can derail your budget and cause panic and hardship. No matter how hard you try, life can get in the way of paying down your credit card debt.

Debt management assistance options

Most creditors will work with Consumer Credit Counseling Agencies to provide financially distressed clients some relief through a Debt Management Plan. This can take the pressure off and alleviate some stress as you pay down your credit card debt, as long as the client will be able to pay off their credit card debt at reduced interest rates and lowered monthly payments, and have that credit card debt paid in full within a 5 year period.

Ways that a Debt Management Plan can help

Once you have completed a credit counseling session with an approved consumer credit counseling agency, that agency can help you pay off your credit card debt by working with your creditors to:

  • Lower monthly payments
  • Reduce or eliminate interest rates
  • Stop late and over-the-limit fees
  • Consolidate credit card payments into one monthly payment
  • Stop collection calls and harassment from creditors

What you need to know:

  • A Debt Management Plan can provide a thorough assessment of your financial situation.
  • A Debt Management Plan can help give some relief as you work to pay down your balances.
  • Enrolling in a Debt Management can put an end to the stressful collection calls.
  • A Debt Management Plan may even help clients save money, and build a nest-egg for unexpected financial emergencies.
  • If bankruptcy is a client’s best course of action, they can create a plan that has the best possible impact for their future.

Progress starts with action

If you suffer from some of the financial hardships mentioned above you may be a good candidate for a Debt Management Plan. These programs can help you get back on track and help get your financial future in order so you can pay off your credit card balances faster and on-time. However, a Consumer Credit Counseling Agency won’t be seeking you out as your creditors may already be; you have to take the steps to make things happen.

Want a free consultation to determine if bankruptcy is a viable option to resolve your debt situation?  Call us today at (757) 320-2010. 

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Edrie Pfeiffer
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Edrie Pfeiffer, Bankruptcy & Divorce Attorney