How to Start a Debt Management Program

A Debt Management Program aims to free you of unsecured debt in just 60 months. Much will depend upon the amount owed, how much you can afford to contribute each month and the charges imposed by the debt management company. Instead of making multiple payments, a single sum will be sent to an intermediary and this will be disseminated to creditors on a pro rata basis. This helps prevent further creditor contact and provides a legitimate opportunity to become debt-free.

Choosing a Debt Management Company

- Gather comprehensive feedback from friends and family who have enjoyed success with a Debt Management Program. This information could prove invaluable, particularly if they have a specific contact who is particularly helpful.

- Visit the Better Business Bureau online at bbb.org. You will be able to discover how long a debt management company has been in operation. Check to see if there have been any negative comments left by former customers as these can be very revealing.

Use this approach to choose a long-standing debt management company that rarely receives complaints.

How to Prepare for a Debt Management Program

- Gather key information, such as the creditors name, address and telephone number, how much is owed, the rate of interest and the monthly repayment. This information can normally be found on the latest piece of correspondence or the credit agreement.

- As a debt management program is based on affordability, provide a comprehensive breakdown of all income and expenditure figures. This makes it easier to determine how much you can realistically afford to contribute each month without creating further financial hardship.

Once a debt management company has all the necessary information, a negotiation process can begin in order to establish an affordable monthly payment. Ask for details to be provided in writing.

Disclaimer: This article in no way attempts to provide legal, financial or tax advice. One should consult a licensed attorney, tax advisor, or other qualified financial professional before proceeding.