Steven Eidelkind- How Should We Approach Debt Management-converted

1. How Should We Approach Debt Management? Steven Eidelkind Borrowing money to make important purchases can help you fulfill your dreams, but if the payments on debts become more than you can manage, the situation can become more like a nightmare. Steven Eidelkind says that you can create and implement a debt management plan with the help of a consumer credit counselor. You can pay all your unsecured debts included in a debt management plan with a single payment each month. Despite the fact that it is not a loan and will not allow you to pay less than what you owe, a debt repayment plan can simplify the repayment process and shorten the time it takes to repay your debt. It is common for creditors to agree to waive late fees and to reduce interest rates as part of a debt management plan. As a result, an interest rate might be lowered from 20% or more to less than 10%. All unsecured debts should be paid off within three to five years under a debt management plan. Usually, it will take four years to pay off all unsecured debt. Credit cards and personal loans are the only types of debt managed by debt management plans. The figures exclude mortgages, auto

2. loans, and other debts backed by collateral. Student loans are also excluded. The client will be prohibited from applying for credit cards or loans during the period in which the debt management plan is in effect. Also, it is crucial that all monthly payments to the agency be made on time and in full, so the creditors can receive their payments as scheduled. Otherwise, the creditors may reinstate late fees and begin charging higher interest rates. Before signing up for consumer credit counseling, Steven Eidelkind advises researching their reputations and resources and determining whether there would be a better alternative, such as a consolidation loan or bankruptcy.