Most debt management companies will provide free credit counseling for those who are seeking their services. You should be able to get a free or low cost consultation to help you determine which of the many debt management options will best suit you in your circumstances.
In your free or low cost debt management counseling session, you will be shown what you can do to become debt free. In some circumstances, they will simply show you ways you can work on paying your debt as well as giving you debt on how to use your money more wisely in the future. In these instances, a debt management plan may be too extreme for your needs.
In many cases, a credit counselor will advise you to get a debt management plan. The debt management plan may be right for you if you are struggling with paying your unsecured debt, most commonly from credit cards. The debt management plan can help you to pay off your debt in a matter of years cutting your interest and fees down to a reasonable amount. Each month you will pay the debt management company who will then in turn pay each of your creditors a specified amount. You will be able to see your balances continually decrease on each month’s bills.
In more extreme cases, you will be advised in your free debt counseling session that you should seek bankruptcy. They can show you why more traditional debt management options would not be helpful for you. They may even be able to advise you how to help to keep from falling into the same situation through budgeting and saving.
Talk to a credit counselor about what options might be right for you. Find a debt management company that offers free or low cost consultations before you sign up for their program.