A debt management plan is a financial hardship program in which you will receive lower interest rates on your credit cards.
In turn this will help you get out of debt in a much quicker time frame than you would if you did nothing but kept making the minimum payments.
Sounds great right? In theory yes it is but there are definitely some minor hiccups you will have to endure.
It is true that a debt management program will lower your interest rates on your credit cards but unfortunately it will not always lower your current monthly payments.
So if you are thinking that getting into a debt relief program like this will lower your monthly payments and make things more affordable you are mistaken.
The reason this happens is because the banks look at it as if they are giving you a break and making less money off of you.
So in return the bank wants to recoup the original loan amount your borrowed asap.
So now instead of the majority of your monthly credit card payment going to interest it is now going to principal.
And this is why you end up getting out of debt much quicker.
Debt relief programs are usually setup for 5-7 years.
You must also realize that when you are in a debt management program all of your credit cards will be closed and you will no longer be able to use them.
Your credit score will also be affected when enrolling into a debt management program.
Depending on the company you choose they will either report on your credit report or not.
It will usually show as "CCCS" also know as consumer credit counseling which will be looked at by banks as harshly as a bankruptcy.
Debt management is only one of many debt relief options available to those in need.
There are debt consolidation programs, debt settlement programs and many more.
Below is a review of the Best Debt Management Programs around.
#1 Impact Debt Relief: Impact has a great BBB record along with the one on one service we recommend when enrolling into a debt management program.
#2 Eagle One Debt Settlement: Eagle One gets our #2 spot.
Eagle One is a smaller company that works primarely with small credit card balances.
Also they do not work nationwide so they might not be able to help you.
#3 Freedom Debt Relief: Freedom Debt rounds out our top 3.
Freedom is one of the largest companies out there but being the biggest is not always the best.
By the looks of there BBB track record it shows with the amount of complaints they have.
In our opinion they may have sacrificed service in order to become the biggest.
To view a list and read more about the top debt management companies visit our website below.