Posted in: Debt Relief

Bankruptcy Or Debt Management – What’s the Difference?

Louisiana debt relief helpWhen you’re looking for the best solution to your debt problems, debt relief in Albuquerque can be a good place to start. There are many options for getting out of debt, including debt consolidation, debt management, and credit counseling. When deciding between these methods, you should consider the pros and cons of each.

The first key distinction between Albuquerque credit management and debt settlement is the way you pay off your debt. Debt settlement works by paying off the debt with a lump sum payment. Debt management basically pays off your debt over time, allowing you to payoff a little each month until the full amount has been paid off. For many individuals, that’s a commitment they can easily maintain.

In addition, debt management gives you a little extra time to make your monthly payments. This extra time gives you a chance to work on getting your finances under control. With debt settlement, the creditor has the right to continue to make monthly payments to you even after you’ve settled your account. This could be a very unpleasant experience for you.

On the other hand, debt management can be a much less expensive alternative to debt settlement. Most settlement groups charge an upfront fee of tens of thousands of dollars, which is usually included with the monthly payments you have to make. By contrast, many debt management programs charge a much smaller monthly fee for all of their services. After you’ve settled your account, you’ll need to make a small monthly payment toward the total balance, but you won’t have to worry about additional fees like those involved with debt settlement.

Another advantage to debt management programs is the satisfaction you’ll get from working with someone who truly cares about you and your situation. You’ll have a personal mentor who will work with you to develop a personal financial plan that suits your needs. You’ll also have support from people who know how it feels to be in debt. You’ll be able to talk with them about your problems so they can better understand what you’re going through.

These are some of the main differences between the two debt management options. They are both beneficial for many people, but if you’re considering filing for bankruptcy, you should really think about a debt management plan first. It may not be the best option for you, but it might be the one for you. Either way, you shouldn’t hesitate to give it a shot, click here now.