This is an unpredictable world; you cannot tell whether the next moment will you shower with loads of happiness or with hell lot of sorrow. So if unfortunately you come under some kind of debt and you are paying it with comfort but one day you fell ill or something awkward happens and you could not pay your debt on the basis of plan which was decided for your debt repayment and suddenly your debts and interest rates increases which can't be handled by you alone. The 'Debt Management' comes into picture and helps you in these testing times.
The 'Debt management' plan helps if you have unsecured debts and owe money to more than one creditor.
The plans helps you pay the debt from the surplus money, which is left over after you have paid all your living expenses and household bills from your income. The dept management plan is made in such a way that you are able to pay a reasonable amount to all the creditors whose money you owe. One of the biggest advantages of 'Debt Management' Plan is that the charges and interests are often frozen, so your debt doesn't increase. The charge for adopting 'Debt Management' Plan is nil, but sometimes you will be required to pay 15% to 17% of the monthly payment as a start up fee or monthly management fee. The amount you pay to your creditor depends upon your surplus income and how much you owe to the creditors. The amount can be paid in the form of cheques and if you cannot make payments by cheques then paying by cash is a viable option. These 'Debt Management' Plans can't be discontinued at your will, but you should try to avoid this situation because this might again increase the stress on you as the creditors start knocking at your doors and the interests might again be restored by the creditors.
You can always take the help of 'Debt Management' Plan and can easily repay your debt with low interest rates and live life with your head held high.
