As a wise financial guru once pointed out, “You will never make any more money until you learn to manage the money that you already have.” As such, managing your finances is the first step towards financial security. And the first step of managing your finances is debt management. Before you can start saving, you need to pay off the money you owe, so developing a debt management plan that can help you tackle some of your consumer debt is important to your financial future.
The Importance of Debt Management
Debt management helps you eliminate consumer related debts faster and cheaper than you otherwise would be able to. Ideally, it allows you to combine several bills into one monthly payment, offering you a repayment schedule at a lower interest rate. Most such plans are negotiated on a three to five year repayment schedule.
The Advantages and Disadvantages of a Debt Management Plan
The most obvious advantage of adopting a debt management plan is that it allows you to lower your interest rate while combining several bills into one responsibility. That said, however, you should be aware that there are disadvantages of debt management plans as well, including:
- Primarily for credit card debt
- Unable to combine medical, tax, or student loans
- Takes three to five years to complete
- Unable to use credit cards while in program
- Missing one payment can derail entire plan
Even with these disadvantages however, working with a debt relief company like Americor Financial can help you regain your financial footing in the face of steep credit card debt. We are your partners in regaining your financial freedom.
Find the Best Debt Management Plans for Your Situation
When you are ready to manage your debt, and you think that debt management plans might be the answer to your debt woes, you need to contact the financial experts here at Americor Financial to discover the best debt solution plan for your individual situation. We will find the debt relief strategy that works for you and your family.