Debt Management Plans – Federal Government and FTC Advice on Credit Counseling and Getting Out of Debt
Posted on | April 26, 2010 | Comments Off
If you are having great trouble paying off high interest debts and you free that bankruptcy is in your future then you may want to consider a debt management plan. One the FTC website you can find out a great deal about debt management plans for free. A debt management plan is a program that allows borrows to deposit money with a credit counseling company who will then correctly pay off your unsecured debts such as credit cards or personal loans.
It is important to understand that a debt management plan alone is not credit counseling. When you are greatly struggling with credit card debts or other high interest debts you will likely have to go through credit counseling before being able to file bankruptcy. Through credit counseling you may be able to create a strategy to pay down your debts and avoid bankruptcy.
A credit counseling company may suggest a debt management plan but before doing this it would be wise to access the FTC website available here and do research to protect yourself. You do not want to give your money away if you are struggling greatly with debts.
Author: Heather Best