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| Advantages of Debt Management |
1. A single monthly payment instead of many payments to different creditors. The company that manages your debt will do everything else.
2. No fees. Very often companies do not charge any fee for developing a debt management plan.
3. The best possible chance of freezing interest and charges – companies usually don’t guarantee to freeze interest and charges, but they have excellent relationships with a majority of the creditors. Many of these creditors refuse to deal with companies that charge fees for debt management because they think that individuals in debt cannot afford to pay for their services.
4. The process of debt management takes only threes steps:
• informal arrangement
• the company negotiates on your behalf
• reduction in debt and interest
A debt management plan could be the way out if you have...
• disposable income of less than $200 per month
• debts with less than 3 companies
• debts of less than $12,500
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