To begin with, many people find themselves trapped in one of the most precarious situations that they wouldn’t want to be in. well, up to that point I know you wondering what that situation is or let me say what the “situationship?” is Now here I hit you with the very one of our own; DEBT. Yes debt, and just in case you still wondering what that is then let’s do the definition of this MONSTER WORD, debt.
Now we all hear of owing someone anything and it is due, taking it by the very easy street word; owing anyone anything. This is what I am talking about; DEBT. We just defined the debt meaning in simple terms. We not going back there but to fast forward things, I’d like us to discuss debt management, debt collection and the much related aspects of it as a whole.
WHAT IS DEBT MANAGEMENT?
Debt management is an implicitly true but withheld agreement and or contradicted by authority with unsecured (without collateral) creditors for repayment of debts over duration of time, generally extending the amount of time over which the debt should be settled. So what are these that happen while on a debt management scheme? This is where the creditors are offered a Statement of Affairs (SOA) in which their disposable income are estimated by the debt management company, then they are proffered to them after whom they agree to it or not. How do you get to attest or not? Find below:
DEBT MANAGEMENT PLAN,
Debt management plan is the very easiest thing as it simply means getting on a repayment plan or schedule that fits within your budget. Technically by doing that you will have rebuilt your credit records and finally found your way out of the defaulters list or out of debts. The pros of this, Is that you’ll get to manage money better and avoid falling into same trap or the very monster word DEBT. Practically this is extremely beneficial to all and especially for those who are in overhead with debt and needs instantaneous aid.
FUNCTIONALITY OF DMP…
For functionality of this, all you need to do is a very simple task, be on a DMP system that will allow you to pay partially over duration of time depending with Statement of Affairs (SOA). Essentially, once your creditors agree to the plan of you facilitating the debt monthly, weekly or daily you will have your debt divided and dispersed. The interest is often lowered and the late fees or penalties are waived off for ease of payment. During this time most of your accounts are closed, strong advice of not opening any other accounts or new lines of credit is also offered. The purpose of this is to help you focus on paying off the debts and not creating new debts.