Debt Management Nonprofit

The first step is talking to your debt management consultant about your overall financial situation. The consultant will review your monthly income and compare it to your total monthly expenses to get a complete picture of your unique circumstances. The consultant will then contact your creditors to inform them of your intention to enter a debt management program. CredAbility has been in business for over 50 years and maintains contact with an extensive network of creditors. It is often possible to negotiate lower interest rates, which will help you pay off your debt more quickly. Your consultant will also create a repayment plan that allows you to pay down your debt without drastically reducing your standard of living. Debt management takes dedication and some sacrifice, but you will be rewarded by seeing your balances shrink and your financial prospects expand.

CredAbility says that the consumers on its Debt Management Plans in 2010 had higher incomes, more credit card debt and were older than in previous years.

In 2010, the average income of a person on a DMP with CredAbility was $53,880, a four percent increase compared to 2009. Each person on a DMP in 2010 had an average of $24,266 in credit card debt, a 4.5 percent increase compared to 2009. The average age of a person on DMP in 2010 was 48, up from 45 years old in 2009.

“While people enrolling in our DMPs earn good incomes, they have an increasing amount of credit card debt,” Williams said. “We can help them negotiate lower interest rates with their creditors that may result in lower monthly payments.”

Many people who opt for a DMP to repay their unsecured debt are prompted to seek help after late payments have caused their credit card interest rates to soar. In some cases, a DMP is a sound alternative to bankruptcy. Ultimately, the plan serves the dual purpose of helping consumers repay their debts and helping creditors receive the money owed to them.

read more at: Debt Management Nonprofit