What Is A Debt Management Plan?

Not many things in life get done without a solid plan in place. When you were younger you had to stick to a plan at school and at home, to make sure homework was done and turned in on time and that you got enough rest to wake up without being cranky. If your family ever took summer vacations, you probably never just hopped in the car without first knowing where you were headed. A vacation also requires a plan, or you could wind up without a place to sleep while on the road. The key to planning anything is to look at what is needed, research the available options, and then make a plan you can follow. When you do that school mornings and vacations are a breeze and your finances can be too if you are able to develop and adhere to a debt management plan.

A debt management plan can be as simple as you coming up with your own scheme to get out of debt and stay out of debt, but if you need more in depth help, a debt management plan takes on a different meaning. In that regard, a debt management plan includes:

•         A visit to a counselor who will review your debts and try to reduce your payments with each lender.

•         Some of these plans allow you to sign on to a site once the plan is in place, so you can track payments and other activity on your accounts.

•         The agreement is voluntary, and you can change your mind at any time. But keep in mind if you stop a plan before it is complete, you will not get the benefit of the terms of the plan. If your plan was for repayment of a lower balance on your debts, you will likely know owe the entire amount.

Because it can be hard to stick to a debt management plan and because not all of your creditors might agree to different repayment terms, it is always nice to know what else you can do to get a handle on your debt. One thing might be to ask for your mortgage lender to modify your mortgage, so you have a lower house payment. Another thing might be to contact a bankruptcy attorney, and look at the options available to you for filing bankruptcy. Both of these things can do as much if not more for you than seeking counseling for development of a debt management plan. Call us today to find out what will work for your situation, and let us help.

For more information about debt management, call us today or reach us online at www.law-ri.com. We have multiple locations to serve you and can schedule a time to meet at the office most convenient for you.