The following guest post is brought to you by Payplan.
Over the past few years, many Americans have found themselves being buried in debt and have been struggling to find a solution to help get them out. Some individuals’ habits contributed to this problem, while others found themselves in unexpected situations with medicals bills or other debts.
When trying to get out of debt, many have found that developing a comprehensive debt management plan is useful to creating achievable goals, and building upon successes.
Free Debt Management
When considering a debt management plan, make sure that you find one that is free. Many debt management services charge for their plans and that is almost self-defeating to individuals trying to escape debt.
Many free debt management plans will partner you with experienced debt advisers, many times people who have been in the same situation and have gotten out. They will not judge your situation and any advice they give should remain completely confidential.
What To Expect
If you decide to pursue a debt management plan, you should expect that any plan works with you and is not generic. All parts of the plan should be fully explained to you, and action steps on your part should be fully detailed with timelines and items that need to be delivered to debt holders (such as credit card companies and other lenders).
Many debt management plans also offer the option of making a single monthly payment to the company offering the plan, and in exchange the company will make the needed payments to your lenders. If you choose to go this way, make sure that all terms are clearly spelled out, and that you are fully aware of what each lender will receive.
The bottom line is that a debt management plan can be a useful way to get out of debt, but you still need to be aware of what the plan entails. It is not sign up and forget. It is sign up and use it as a tool to get out of debt in a responsible way.