often fall into the trap of letting our spending exceed our income. We may want
to keep up with the Joneses and spend too much, or we may have unanticipated expenses,
like car repairs, that cause us to spend too much.
If we spend more than
we earn, we have to borrow to make the payments, so we get into debt.
isn't bad if you are borrowing to buy a car or house, but if you have more debt
than you can repay, you have a debt problem.
That's where a debt management programcan help.
A debt management program is a plan, prepared by a
credit counselor, to repay your debts.
The credit counselor will start by
explaining all of your options, such as budgeting, debt consolidation, and even
bankruptcy. Then, if your debts are not too high, and if you have at least some
income to make payments with each month, they will create a debt management program.
will then contact your creditors, negotiate with them to accept your debt management
program, and then collect payments from you each month to distribute them to your
creditors. They can even arrange to take the payment automatically out of your
bank account each month.
Once the debt management program is up and running,
your credit counselor can provide you with ongoing advice to keep your expenses
low, and to keep you debt free.
A debt management
program is not the correct solution for everyone. You can't have too much debt,
and you need a job or other source of income to make the monthly payments.
if you qualify, Debt
Management Credit Counseling that starts with a debt management plan may be
the perfect solution for your debt problems.
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