What is debt management and what does it involve?

Debt management is quite simply a process in which debt is eased and eventually reduced through the controlled management of payments and a reduction in interest rates.   When enrolled into a debt management plan, consumers deposit set funds aside each month that are then used by the debt management company to pay off their credit card bills.

How do I know if Debt Management is for me?

Does your debt appear to be growing faster than you can keep up with?  Can you make more than the minimum payments but not enough to pay the debt down?  Are your interest rates over 18%?  Do you believe you can afford to pay your debt off over the next several years but just need structure and guidance to accomplish that goal?  A debt management plan is an effective way to consolidate your debt into one easy monthly payment and provide the structure and tools necessary to get out of debt.

Do I choose a for-profit or non-profit company?

Many consumers have a misunderstanding about non-profit debt management companies vs. for-profit companies. Both offer support and programs for the consumer and both charge some type of fees for their service.  But the credit card companies fund most non-profit consumer credit counseling companies.  This helps to pay for the non-profit to stay in business and the credit card company benefits by recovering money from consumers who are currently not making their payments. The biggest difference is that a non-profit does not pay taxes whereas a for-profit does. Study the company carefully to see if it uses "non-profit" status simply as a marketing tool.  A for-profit company is going to work harder for you as the consumer than a company that relies on the credit card companies for their livelihood.

What should I expect to pay for a debt management program?

Over the past few years, credit card companies and other lenders have reduced some of the funding for credit counseling. This has lead many counseling firms to increase their fees.   A baseline of between $50-$95 per month is a good guideline for an initial new debt management plan. Additionally, you should probably expect to pay no more than $500 to enroll in the program.

Our Debt Management program benefits and services.

A Written Plan. First Rate Debt Solutions will take time to review your situation, help you with budgeting and money management, and put your individual plan in writing. This personalized plan will include the details on how creditors will be paid, as well as the specifics of how much money you can save, what your new interest rate may be and how long it will take you to get debt free on your debt management program.

Customer Support. Our office has a customer service team that is highly experienced in debt solutions and credit card debt. They will be available to answer your questions and aid in your success in the program.

Benefits. Part of our Debt Management plan includes membership in the First Rate Benefits Plus program offering a variety of helpful services to you.

Being in debt can be very stressful and how each individual addresses the situation is unique. Before taking any action toward resolving your credit or debt troubles, look closely at your current budget to determine if you can pay a bit more than the minimum on your debt. Determine exactly what your mandatory expenses are and what you may be able to do without. Then it's time to decide if you could benefit from a debt management plan. The best way to do that is to speak with a professional debt consultant who will evaluate your situation and help you to determine the best solution.

The consultants at First Rate Debt Solutions have years of experience in financial and asset management. They know that you are unique and so is your debt solution. For a free consultation and more information on the debt solutions available to you, call today at 877-332-8730.