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Debt management can be a good thing too

Debt management is needed when a person needs to take time in understanding as well as keeping his or her financial debt in track. This is important to ensure that he or she will be out of monetary troubles and can acquire all the benefits he or she enjoys at the moment.

While there is a stigma with regards to debt management, many people dont recognize that this can be a good thing as well because it signifies that see your face is still capable of getting as well as paying for that debt.

One thing that people are afraid of in terms of debt management is through credit cards. This is because they think that because of the hidden dangers and charges of credit cards, they will not be capable of sustain it as well as worse, they can even belong to a swirling abyss of debt.

While it is true that these things can happen, people should not close their doors to be able to credit options because credit credit cards can be a powerful device in managing their own finances. Whether they opt to get one or not, controlling finances still takes a sense of good budgeting, willingness to change investing habits, and the humility to avail low interest rate consolidation loans when you are previously burdened by a lot of bad credit.

Of course, there’s always glitches such as negative credit when a credit card is not used properly but still, it still pays off to have bad financial debt than not to have any debt at all.

The reason why managing debt is a good factor

Having debt is usually better than having absolutely no debt at all because this means that there is still something for banking institutions or mortgage firms to look at. If you dont have debt, debt companies would automatically assume that you:

– dropped job or unpredicted lost of income. These days, one of the major reasons for you to definitely have no credit is to have forfeit your job. Because you provide an uncertainty of whenever and how youll pay off your debts and everything first thing could go is not to push through with a credit card program.

– not integrated on the Electoral Register. If you are not a registered voter at the time of your credit application chances are youll end up with no credit. This can be a a dangerous thing for you because it signifies that you are hiding something that can be illegal in the country where you are residing in.

– have volatile living condition. Having debt is much more suitable than having not one at all because it can easily somehow determine the persons stability or fluctuations. Even if you have numerous credit apps that are either declined or approved, getting credit application records is still preferable because it means that despite the persons desperation, the person is still willing to obtain a credit and somehow repay it.

– undergoing separating or divorce. Breakup can also dramatically affect you with having no debt, whenever a spouse is in charge of having to pay all your credit card and credit dealings, separation from your partner can also lead to cancelling or discontinuance of your credit card contract. This also leads to having no debt in any way.

– have been bankrupt before. If you have been insolvent before, your statement of bankruptcy goes to the particular file of the federal institution for banking. It is a permanent spot on your credit rating and may bring you debt management problems because there are instances that when you are trying to refocus for a new credit rating, this file can come out and will worry your credit rating.

Comments: 57

  1. Towanda March 22, 2013 at 12:47 pm Reply

    Hi, i am looking for the cheapest and best debt management company, do you have any details please?

  2. Issac April 11, 2013 at 1:21 am Reply

    I signed up with a debt management company due to a large amount of credit card debt I accumulated.This was after I read that this can be equivalent to filing for bankruptcy? Is it really that bad? Now that I have focused on paying off debt (on time) and budgeting, I am hoping my credit score can greatly improve in spite of the debt mgmt program? I have since canceled the program and I’m paying the debt myself.Thanks.

    Please, no sarcastic “told you so” comments, I’m kicking myself enough as it is!

  3. Shena May 8, 2013 at 5:41 am Reply

    We are about to begin a debt management plan through CCCS. One of the first questions on the application is do you have over $1000 in medical bills. Why do they ask this? Will they help with these bills?

  4. Danna May 15, 2013 at 1:12 pm Reply

    I’m currently in a situation where I’ve collected more debt than I can manage and the interest payments are staggering.
    Besides telling me how I can better spend my money, I’m wondering how a debt management company could help me?
    I own a house. Would they somehow tie the debt into my mortgage payments?
    Basically – what can they do for me that the bank can’t?
    Boss – why not spam less serious questions?

  5. Jill June 3, 2013 at 1:41 am Reply

    I signed up for a legal debt management company, then my hours started lacking at work so I called and cancelled the program and three days after the account was closed they took money out of my bank that caused an overdraft. Is this LEGAL do to not having anything to do with the company? When I notified them they stated they could not give money back to bank that there was nothing they could do.
    I am sure there is some kind of law about this they basically stole from my bank!
    Please give any info you have I appricaite it.
    There was no cancellation fees and once you close the account it is closed. I don’t owe them anything.

  6. Elwood June 8, 2013 at 4:11 am Reply

    I’m behind in my bills and have an opportunity to go on a Debt Management Plan, but need more info to see if it is a good idea for me.

  7. Bud July 8, 2013 at 9:23 am Reply

    I am on a debt management plan however all of my accounts are now current on the plan. Will this affect my ability to rent a new apartment?
    Just to clarify, I did not file bankruptcy but am simply on a debt management plan for making payments.

  8. Emanuel July 18, 2013 at 9:45 pm Reply

    My friend informed me that I should check advertisement has been placed for empolyment by Nigeria’s Debt Management Office I searched for the advert at that address and the application must be made on-line but I cant find the location can someone please help me out?

  9. Faustina July 23, 2013 at 5:01 am Reply

    Most debt management companies are looking to take advantage of your situation. Is there any that is truly interested in helping to get out of debt?

  10. Zena August 1, 2013 at 4:04 pm Reply

    If you enter a debt management plan with a bank that you have credit card debt with, will it affect your credit report and credit score?

  11. Hillary August 16, 2013 at 7:05 am Reply

    We are drowning in debt. So far we have managed to get our MINIMUM monthly payments out each month but we are getting no where. Would a debt management program be a good option for us? What exactly is it? Where do I find a reliable one to work with?

  12. Christian August 26, 2013 at 9:55 pm Reply

    I have credit card debt that I am considering using a Debt Management Company. Any thoughts?

  13. Dave August 26, 2013 at 10:58 pm Reply

    I did an internet search and all lead me to already established debt programs. I want to set up my own debt management program, which can negotiate with creditors, consolidate loans etc… How do I get started?
    I reiterate: There are literally thousands of debt management, consolidation, counseling website and resources. I am not looking to manage my own debts, I looking to start a debt management program for other people. I want to know what grants to apply for to begin a start up program. I want to know what regulations, fees, licenses I need to start my own debt management program so that others can come to me for debt consolidation services.

  14. Micaela September 12, 2013 at 4:18 am Reply

    I am in need of a good legitimit debt management program one that does not charge huge fee’s does anyone have experience with one? please help!

  15. Enda October 5, 2013 at 12:59 am Reply

    Last year I had lost my job and got way behind in my bills. When I found a new job I decided to work with a debt management company to help with my debts. I’ve been with a company about five months and I’m starting to get calls from collectors almost every other day. I thought this company was helping me, but it seems to have made things worse. I decided to drop this company and just make arrangements with the original creditors to start making payments. From my personal view it’s better to work with the original creditors.

  16. Alberto October 5, 2013 at 12:59 am Reply

    Can you get approved for mortgage after going through a debt management plan (DMP) with a CCCS?
    I have done a lot of research and I keep getting very conflicting information about the effects of a CCCS.
    I want to hear from people that have gone through DMPs and what your experience has been like after completing the DMPs in term of applying for new credit.

    I will also like to hear from mortgage lenders and other issuers of credit about your experience with approving people that that have completed a DMP with a CCCS.
    I am thinking of signing up with a reputable company; however I want to buy a house in the next year, and I’ll like to know where I stand.

    Thank you.

  17. Brandon October 21, 2013 at 11:08 pm Reply

    I have a credit card debt of about $9,600.00 with a major credit card provider. They are charging me 24.99% interest. The minimum payment is around $300.00 and $200.00 of this is interest. What would be the best thing to do? Should I use a debt management program to pay it off or stop paying it all together and let it go to a collection agency where I could then settle with them and ask that when I settle that they remove the negative information from my credit report?

  18. Nieves November 4, 2013 at 6:52 am Reply

    can anyone who wants to run a business start a debt management company?

  19. Sophie December 23, 2013 at 9:06 am Reply

    As far as I can tell “debt management programs” are really just friendly faces of creditors that aren’t interested in helping you as much as they are creditors. My wife was using one when we first married and they screwed everything up. It also destroyed my wifes credit for 7 years and charged her monthly to do it!
    Are there any ones that are actually out for the little guy?

  20. Waylon December 23, 2013 at 9:23 am Reply

    I am thinking about getting credit counseling and enrolling in a debt management plan. But I want to know if it hurts your credit score. There seems to be so many scams out there right now.

  21. Lionel December 23, 2013 at 11:53 pm Reply

    I have over $20,000 of credit card debt. I am able to pay them off slowly now, but I am thinking of consolidating everything with a debt management program. This program said they will close all my accounts and all I have to pay is a low monthly payment of $500 a month for all my credit cards. Is this a good deal? I am not sure. Thank you for reading and thank you for your time.

  22. Johnnie January 1, 2014 at 1:23 am Reply

    If you enroll in a debt management plan (the kind where the Credit Counseling Agency negotiates with your creditors to lower your interest rate and enable you to make a smaller lump payment each month, and so forth), is it usual and/or customary for them to take some of that payment you make each pay period and keep it as a fee?

  23. Agustin January 3, 2014 at 12:57 pm Reply

    I just entered a debt management program to get control over my credit card debt. I have done this seperate from my husband. Only my credit is affected. Just after I entered into the program, my husband started showing interest in a home equity loan to consolidate our debt (his credit card and vehicles) and do home improvements. In our marriage I am responsible for my own debts, but I am wondering if being in the DMP will affect the chances of us obtaining the Home eq. Loan. Serious educated replies will be very much appreciated.

  24. Isabel February 2, 2014 at 10:05 am Reply

    Has anyone else on here used Payplan? Are they good? How are you coping with debt problems? I have serious debt problems and a friend advised me to declare myself bankrupt. Is this a last measure?

  25. Elton February 2, 2014 at 6:27 pm Reply

    I need some advice, me and my partner have got into some financial trouble and im thinking about debt management. Can anyone who has been through it tell me the good and bad points of it??
    Also while were are struggling with debt at the min we are both recent graduates and should be in a much better financial situation in 6 months or so, and im worried if i enter into debt management i will be paying it off for years rather than working hard and getting it paid.
    advice??? thanks

  26. Eddie February 21, 2014 at 11:13 pm Reply

    Step by Step How to Manage Debt?

  27. Catarina February 21, 2014 at 11:46 pm Reply

    but i still get the collection agencies calling and MMI wont return my emails whats going on

  28. Chandra February 22, 2014 at 12:29 am Reply

    I’ve been in a program for 10 months now. I’ve recently come into some money that will pay all these bill off. Now I’m a little conserned about sending a rather large check to the debt management company. They’ve been good in the past, paid what they said, but it just bothers me to send this much money to them. I wonder if I should pay the bills myself or let them do it. This is a once in a life time chance for me I can’t screw it up.

  29. Josephina February 22, 2014 at 12:33 am Reply

    i am just hopefully going to go on a d.m.plan could any one let me know do they work for piece of mind thanks

  30. William February 22, 2014 at 12:48 am Reply

    I have recently enrolled in Credit Solution Debt Management Program and I am not sure if I should keep investing in this program. Should I be more patient or should I just cancel the account. Please help because I dont know if my money is going to my benefit. I am not sure if they are working on my behalf. I am also not sure if they are even dealing with any of my creditors. I honestly dont think they are.

  31. Elisabeth February 22, 2014 at 2:28 am Reply

    Ok so first i was wondering in there were any debt management websites that can help me pay it off. I only have one job and i dont make very much. I am only about 2500 under so im not in deep trouble yet but enough to ruin my credit score. im not good at paying anything off alone. what should i do?
    is there a debt management website i can go to. Or should i call one of the debt management poeple you see on tv all the time. Is there a good one who will work with me even though i dont owe as much as others?

  32. Clotilde February 25, 2014 at 11:14 am Reply

    We are 33, 000 in debt with credit cards..most at 20%..In speaking with “pro corp’, they say they can reduce it to just over 17,000…payments now-1100.00 per month to 520.00 per month, and out of debt in 36 months.. has any one ever taken this route ?
    If so, what are the draw backs .. thank you

  33. Davis March 10, 2014 at 8:41 pm Reply

    I am a finance student doing a project with a company’s financial statements. I want to calculate Debt over assets.

    My problem is that the company has listed its stock options that the executives may exercise in the future as debts in the annual statement. I know this is usually not on the balance sheet, but should I add these options in when calcuation the above ratio?

    I would like to know what the rule is in both accounting and finance regarding if stock options are debt.

  34. Julieta March 14, 2014 at 4:25 am Reply

    i am about £10,000 in debt and it has really gone to far and i desperately need to get it sorted. can anyone advise me whether or not debt management is the way forward and who would the best people to go with

  35. Marion March 14, 2014 at 4:25 am Reply

    Has anyone been on a dept management plan ? How do they work ? And how does it affect your credit? thanks

  36. Ines March 18, 2014 at 4:16 am Reply

    and they said when i first started with them i owned £6,500 or just under, i have now been with them for 2 years and i just spoken to them on the phone and they said i now owe just over £5000…
    i think that is so bad that i have only paid that, i have been payin £150 every 4 weeks for 2 years!!!!
    i am totaly shocked, i really dnt no what 2 do!? someone please help!!!!
    haha hope you understand what i just written, i just read it then and didnt make much sence!! but my point was that i have only just paid over a £1000 and been with them for 2 years, paying £150 a month…. still shocked!!!!

  37. Granville March 18, 2014 at 4:17 am Reply


    my wife and i are both currently on a debt management plan and i live in her house which she has the mortgage in her name and her ex husbands he wants to remove his name and we tried the woolwich who she is with now to remove it and put my name on,they replied by saying we wont touch you with a dmp, does anyone know any where we can get mortgage or rent property with a debt management plan in place please?

  38. Giselle March 18, 2014 at 4:18 am Reply

    I have alot of debt, and i have recently got a personal financial manager from a company called fresh start, he has reduced my monthly outgoings from £530 to £120! this is really helpful to me and it feels like the world has been lifted off my shoulders but it sound too good to be true! will i get my debtors threatenning me with court and stuff because of this?! my PFM siad they cant do anything to me once i have a PFM and that i have to tell them that from now on payments will come from fresh start and give them my PFM’s name and number and tell them to speak to him! is this true!?
    PFM = Personal Finance Manager
    The £120 goes to both my debitors, and also to fresh start as their monthly fee, so im paying no extra than that per month!
    And also the interest will be froze on the loan and i only pay back what i borrowed

  39. Elana March 19, 2014 at 4:27 am Reply

    I’ve been unemployed for 3 years and unable to find a job. I have one single credit card with one company owing just under £2,500. I have had to pay this using my savings but those are dwindling and I am going to go with Payplan for advice and help with this. I’m going to write to my creditor asking if I can pay a lower monthly payment. What I want to know is, how will this affect my credit, and when I do finally get a job and say I need a loan will I be able to get one after this ? thanks for any helpful replies

  40. Danna March 21, 2014 at 12:55 am Reply

    I am pleased that she is taking action to resolve her difficulties but feel I have let her down badly – I thought she would have known better than to get into such serious debt. This means for five years she will not be able to get a mortgage – she will be 28 before she can even apply – would it be better if I got out a loan and helped her out – I could not afford to do it for both my daughters though – the other one is very sensible with money so I feel that I would be letting her down too by seeming to favour the other

  41. Jannette March 29, 2014 at 7:48 pm Reply

    As much info as possible would be good.

    I know the basics of it but there is so many horror stories.

    I have been speaking to 123 Debt Solutions. Not done anything yet though.
    So I know they basically speak to the creditors on ur behalf and take a monthly fee from the amount you pay.

    But they also stop interest and charges.

    So what you are paying goes to solely paying off debt.

    And you can increase amount you pay if you get more income.

  42. Ray March 29, 2014 at 8:20 pm Reply

    Has anyone used care one credit counseling for a debt management program? If so can you tell me about how it worked for you or just in general what it did or didn’t do anything really??!!

  43. Nickolas April 1, 2014 at 4:34 am Reply

    Is credit counseling the same as debt settlement?

  44. Shelton April 5, 2014 at 11:46 pm Reply

    Our credit rating is good+ but We’re struggling. And most likely will get worse. (lost good healthcare). I hear Debt Management Programs can help but will mess up your credit. Is that true? Most people who use them don’t care because their behind anyway. Lenders aren’t lending for dept consolidations or 2nd mortgages also. We have 2 homes, renovating 1 to move into, want to sell the other (we live in) when we can move in the other. Both are mortgaged. We have another house (3rd) that we are the note holders on and get monthly income. We tried to sell the note but can’t find a bank willing to buy a private mortgage. Any ideas or suggestions?

  45. Jimmie April 10, 2014 at 4:43 am Reply

    I am thinking about getting into a debt management plan because my unsecured credit card debt is getting out of hand. I would have no problem paying my monthly payments if my interest rates were not so high. I do not know much about a debt management plan so I would like to ask some questions before I decide to enter into one. First, will a debt management plan have any effect upon your credit score? Will it make it decrease, increase, or stay the same? Second, can you get out of it if you decide it is not for you? Third, can they prohibit you from using a credit card that you have not used if you feel their is a need to use it, like for an unexpected problem or emergency? And lastly, why would credit card companies want to lower my interest rates and monthly payments just because I am in a debt management plan? Will the credit counselor of the debt management plan really be able to get me lower rates and payments?

  46. Shanna April 23, 2014 at 8:25 pm Reply

    affect credit ratings?

  47. Vilma April 26, 2014 at 10:59 pm Reply

    are these companys that take all your debts and put them into one easy payment any good, wot do they get out of it. do they cover court fines

  48. Shanel April 27, 2014 at 1:23 am Reply

    I had previously anticipated cost of living adjustments (COSA’s) for both the VA disability (I’m a disabled veteran) and Social Security disability. Thanks to the economy, my projections have been laid waste as the government has friezed those adjustments the last three years. Where I once projected having an extra $400 a month, I’m now finding myself short $45 a month and I’ve been borrowing against my credit cards to make all my debt payments. Keep in mind that non-credit card creditors don’t care that I haven’t been getting the COSA’s and these bills (utilities, groceries, security, insurance, etc) keep increasing, not just annually, but some have increased monthly.
    I have three credit cards: two of them charge around 21% interest and the third around 30%. I’ve tried to get the interest reduced and have succeeded in some cases, but after a period of time the rates go right back to what they were before. I’ve tried debt consolidation with my commercial banks (the bank I hold my mortgage with and the bank my checking account is with), but have been denied help by both.

    So, I’m hurting.
    My question is … Is there a debt management program that you can recommend that would help me out? One that won’t hurt my credit?

    Or am I better off declaring bankruptcy?
    I really want to pay all my bills and don’t want to leave my creditors holding the bag, so bankruptcy would be the last option if there were any other way.
    If it helps, I’m a disabled vet (certified 100% thirteen years ago).

  49. Gerald April 30, 2014 at 5:10 pm Reply

    My mom has had help with her bills with a debt management thing, as she now pays the company. Im having some problems paying my bills as a sudden change of money. Would it be allowed to both have dent management thing from the same company? Would it be allowed by the company?

  50. Dexter May 17, 2014 at 3:49 am Reply

    Explain how the accounting for bad debts can be used for earnings management.

  51. Edelmira May 18, 2014 at 12:12 am Reply

    I was laid off my job two years ago and went back to school, our credit is so bad I can’t even get a checking account! My husband and I lost our home due to foreclosure and we still owe close to 10K in credit card and hospital bills. Since our credit is already ruined will bankruptcy hurt us any more? My husband and I are scared of Debt Management Companies, his aunt went through one that took ALL of her money every paycheck! We have three children and I know that Debt Mang. companies don’t figure in baseball fees, boy scout trips and football cleats into their figures. Am I being selfish to want my children to be able to participate in extracurricular activities?

  52. Florencio May 24, 2014 at 9:54 pm Reply

    Can somebody explain me debt management and credit counnseling, please?

  53. Kareen May 27, 2014 at 3:50 pm Reply

    she owes 25K on credit cards and unsecured loans. 1 option is Debt management, a higher payment over more time but less credit damage. Another is a settlement, less $ paid off sooner but seriously dinged credit. She still may move once in her life, meaning a lease or purchase. Suggestions?

  54. Cordia June 10, 2014 at 3:27 pm Reply

    I was in a debt Management Plan and stupid let my payments fall (due to circumnstances and unexpected treatment that i had to have) and now they have teminated my plan. Where do I go from here??

  55. Zachery June 11, 2014 at 4:16 pm Reply

    I’ve done SOME research but I’m still unsure..
    I’ve visited with one company…you completely stop making payments to your creditors. After 3 months, they(credit counselors) step in working with the creditors to lower your payments and interest rate. BUT, you have to stop paying them for 3 months in order to “build a case.”
    I don’t want to hurt my already dying credit rate.
    Are there any other type of credit counseling services that DON’T require you to hurt your already damaged credit?
    I’m not behind on any payments yet.
    I’m still paying the minimum if not more every month before the due date.
    I’m just trying to find something where I can have my payments all lumped into one large sum…and instead of trying to divvy it out amongst the different credit card companies…have it done for me.
    (oh…and of course lower the interest rates)

  56. Davis June 15, 2014 at 7:38 am Reply

    and what are the job we might get if we take that field?

  57. Ray June 15, 2014 at 11:03 am Reply

    i been with 3 debt management always promise be out of debt in 12 mths no good just want my credit back need help

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