Debt Glossary : Debt Management
Debt Management is a popular strategy for reducing your monthly repayments on problem debts. Instead of juggling your repayments on all your debts, you make a single monthly repayment to a debt management agency, which then distributes it among your creditors according to an agreed schedule.
The benefits of debt management can include lower total monthly repayments, an end to threatening letters and phone calls, relief from the stress of managing your finances, and even a reduction in the total amount of debt you owe.
The disadvantages include fairly serious damage to your credit rating, and also the fact that many debt advisors charge a fee for taking on your management program.© 2008 Debt Sorter
