Get Your Questions about Debt Management Answered
A debt management program is the most reliable strategy to handle all types of debt issues. If you have any questions related to debt problems, get them clarified by debt management solution agencies.
Debt management solutions
Thanks to the growing number of debt problems, debt management is a billion dollar industry today. But debt management is such a vast concept that many people are still not completely aware of it. This article is an endeavor to offer answers to all your questions related to debt management solutions.
What are secured and unsecured debt?
Loans such as car loans and home mortgages are called secured debt. Credit cards, personal loans, educational loans and various repossession loans come under unsecured debt.
Is secured debt covered under debt management plans (DMPs)?
No, secured debt is not covered under DMPs. Debt management solutions agencies only include unsecured debt under their debt handling plans.
Can I opt for buying a home or car even while am following a DMP?
Yes you can, provided you don’t have any bad credit history and you have been into the debt management plan for at least one year.
How effective is debt management counseling?
If you can handle debt problems on your own, then you don’t need debt management counseling sessions. But if handling debt is getting out of hand, then it’s strongly recommended that you attend counseling sessions. The debt management counselors will teach you strategies on how to reduce your cumulative debt and strengthen your financial condition.
How soon can I get rid of my debt problems?
Debt management solutions are not magic tricks that will make you debt-free overnight. They are just well organized strategies to streamline your finances. According to experts, it takes about 2-5 years to cover all the settlement processes and legal formalities to be debt-free.
If I choose a debt settlement option, how much of my debt can be waived?
According to debt management experts, a debt settlement process reduces your debt up to 40-60%. If you have long outstanding balance due, debt settlement is the best option.
When should I opt for bankruptcy?
Bankruptcy should be the last resort when all other means to pay off debt have failed. Although bankruptcy gives temporary relief from debt problems, it has a negative impact on your future endeavors.
I hope these answers will be helpful in clearing your doubts regarding debt management.
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