A Complete Guide to Debt Management Solutions
In today’s economic crisis, debt management is a savior for all debtors. However, the concept of debt
management is vast and includes various types of services. Knowing the types of debt services will
help you chose the right service for managing your debt.
Types of Debt Management Solutions
Per a recent analysis, in 1980 consumer expenditures were 65% on average in the US, but today it’s a
whopping 110%! With the economy showing no leniency and expenditures growing leaps and bounds,
many consumers are falling prey to debt and bankruptcy. However, debt management helps
consumers manage their expenditures effectively and become debt-free. Debt management solutions
cover many services. Some of the more prominent ones are discussed below.
Non-profit Debt Management Solution
Many consultants offering debt reduction services are non-profit, which means they charge very
reasonable fees. If you are looking for a quality service at very nominal fees, this one is for you.
Holiday Debt Management
Paying off holiday debts is a headache for many, but there is a debt management service exclusively
meant for holiday shoppers. While planning your holiday pay-off, it is suggested that you pay off
higher interest credit cards first and transfer balances to lower interest rate credit cards. If your
company offers a Christmas or year-end bonus, it would be wise to save a significant amount to put
towards holiday debt payments.
Consolidated Debt Management Loans
Consolidated loans have lower monthly interest rates and longer time periods. It makes sense to
choose these to pay off higher debts. However, you have to be disciplined about your expenditures so
as not to fall prey to some other bigger debt again.
Credit Card Debt Management
An important thing about credit card bills is to pay them on time. A delay in one payment might
increase the interest on other cards as well.
Educational Programs on Debt Management
Most often we fall prey to debt because we do not know how to follow a budget effectively. That’s why
many service providers offer educational programs where they make you aware of debt and show you
how to control your budget so as to avoid debt situations. These programs are inexpensive and in
many cases even free. This type of debt help service is very useful because they also help you stay
out of debt in the future.