A simple plan to manage your debt - and free you of worry.
Debt management allows you to make one low monthly payment to cover all your debts. You are relieved of stress, and can save money on fees and interest, too.
First you should know that a debt management program involves your unsecured debt, which may include your credit card bills, line of credit, unsecured loans – or any other debt that doesn’t require collateral (for example, a car) that could be repossessed if you don't make payments.
A Debt Management Program is something a credit counsellor can put together for your unsecured debt:
- A counsellor will look closely at your situation and develop a plan that you can realistically follow based on your income.
- Your credit counsellor will work with your creditors to arrange for the single, low monthly payment.
- The people you owe money to are asked to reduce the fees and interest on all your debt, and most agree to do so.
Basically, a Debt Management Program helps you consolidate what you owe, so all your debts are put together in one package. This one-package approach is sometimes called consolidating debt or restructuring debt.
Details on how a Debt Management Program works
Consolidating debt through a debt management plan could be the answer to all your debt problems. It’s easy to manage, because you’ve got a qualified credit counsellor handling the details including:
- A lower monthly payment your creditors agree to.
- Simple, monthly fund transfers by telephone banking, debit card, or money order.
- Placement of your funds in a secure (insured) trust account.
- Timely, automatic payments to creditors, with full tracking.
But following this plan isn’t the whole story about debt management solutions and debt consolidation. Your personal Debt Management Program also includes having a friend on hand to explore your views about money, and teach you new money management skills that can last a lifetime. You will discover how to:
- Build a personal monthly budget and stick to it.
- Track and control spending.
- Set financial goals that you can reach.
- See money positively and treat it with respect.