There may be pros to debt management programs – especially if it is your last option before declaring bankruptcy – but you should understand what is involved and know what to expect from the process.
For more information on debt and credit management options, have a look at our articles on debt settlement.
Based in Kissimmee, Fla., Barb Nefer is a freelance writer with over 20 years of experience.
She is a mental health counselor, finance coach and travel agency owner.
Often in life, debt can seem overwhelming; credit cards, late payments, medical bills and overdue accounts can add up.
If you find yourself swimming in debt and unsure how to escape, debt management services offer solutions.
Credit scores are more like your driving record: They take into account years of past behavior you can find on your credit report, not just your present actions.
One major factor in your credit score is how much revolving credit you have versus how much you're actually using.
However, these debt relief companies are not perfect, overnight fixes.
The Comparison Rate combines the lender's interest rate, fees and charges into a single rate to show the true cost of a personal loan.
The comparison rates displayed are for the amounts and terms quoted, based on monthly principal and interest repayments, on a secured basis for secured loans and an unsecured basis for unsecured loans, and apply only to these examples.
Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history.
Actual repayments will depend on your individual circumstances and interest rate changes.