Debt Management: An Overview Debt by Michael Snider - January 1, 2018December 24, 20210 We have often heard terms like debt management, debt restructuring, and debt consolidation – either from our friends or the banker whom we often visit. However, there are very few of us who really look up to it and try to do something about it. To know what can be done about management of debts, let us first began with understanding what we mean by it in the first place. What is managing of debts all about? Management of your debts is a kind of formal agreement between a debtor and a creditor. Planning about it is a chart which would help in reducing the outstanding – as fairly and as easily as possible. To chalk it out, we consider everything – income as well as expenditure. This includes everything on the board – rent/mortgage, utility bills, secured and un-secured loans, daily expenses and medical expenditures. So, what a plan includes is a method to systematically pay down your debts through monthly deposits to your credit offering company or the person from whom you have taken the debt. The good thing about such kind of plan is that end payment of duration, you will be debt free and that too waived finance charges! There are hundreds of companies who can help you out in debt management. But all of these work only when you do not take any other debt before the completion of your earlier debt! Here are some of the steps you can follow: ü Get a good credit counselor: As a disease requires a good doctor to treat it; likewise debt consolidation/management too requires a good credit counselor. Ask the credit counselor to chalk out a good management plan which gives you less interest rate as well as finishing off your debt in as less time as possible. ü Look for a licensed, accredited and non – profit agency: Get your details of debt opened only before a licensed company which has been established for 5 – 6 years. Even if it’s a new one, simply make sure that it is a licensed one! Be beware of the ones who ask for your details like your account status, creditor name, balance transfer, cash advance and other details like this. Whatever they offer should be practically feasible. ü Avoid outrageous fees: Simply say no to high fees of the counselor. A high fee is no indication that you will have your debts cleared or you will have a good plan to manage your debts. It is only something that will land you in a deeper trouble. ü Keep a check yourself: Once you have decided upon a counselor, simply do not sit back and take rest. Be sure to keep a check with your lender that he is getting the payments on time. Avoid any situation/condition that will put you in a soup in the later stages. Read the statements which are sent each month by the creditors! Simply follow these steps and enjoy the benefits of managing of debts which in the end will definitely put you back on your feet!