Debt management program is all about handling your debts and stopping them from arising further. There are numerous debt management service providers in the market. These providers have tie ups with large number of lenders. They try to negotiate with your lenders to reduce the size of installments at low rates. In addition to this, following are the services which you may get under a debt management program:
A major tool to reduce the number of debts under a debt management program is debt consolidation which is done through debt consolidation loans. In simple words, these are loans for paying loans. The rate of interest on these loans are much low as compared to total interest on your existing debts. Other than this you can also take steps from your side to avoid debt such as lesser use of credit cards, use a debit card instead, make cash purchases as much as possible.
A debt management program has following reasons which one should look for while applying: