Non Profit Debt Management - Ohio
Credit card debt, and the various ways to get out of it - such as non profit debt management - have become a fact of life for many residents in Ohio. As with consumers in other states, many Ohioans have fallen into the debt trap as a result of any number of reasons, which may include unemployment, a long-term illness, or a personal hardship.
If you are also struggling with credit card debts and are falling several months behind on your payments, you may be interested in exploring your debt relief options and finding out how much savings you can potentially get through debt management.
If you want to explore the benefits of debt relief, answer a few, simple questions to get a free debt relief analysis and savings estimate.
A debt management plan (DMP) is also known in the industry as debt consolidation through credit counseling. What debt management typically involves - whether it is coordinated by a for-profit or a non-profit agency - is combining one's multiple credit cards and unsecured debts into one, consolidated, and more affordable monthly payment to a credit counseling agency.
Today, it has become relatively easy to find a reputable debt management company to help you manage your credit card debts and other types of unsecured debts (such as medical bills, department store charges, or utilities).
Another option available for many consumers is a debt consolidation loan, where you can pay off your credit card debts with one, lower interest loan. These days, many consumers have made these options popular alternatives to bankruptcy, which has a more damaging and longer lasting impact on one's credit rating.
What Are the Pros and Cons of Debt Consolidation Loans?
Debt relief has certainly helped many consumers reduce their credit card and unsecured debts. If you are also overwhelmed with debts, one option available is a debt consolidation loan - which can be a smart move for consumers who want to pay down their high-interest debts with one, lower interest personal loan.
However, a debt consolidation loan involves taking unsecured debt and paying it off using funds that come through a "secured" loan, meaning, a loan where you would have had to put up your home or other asset as collateral.
But there is another risk to this form of debt relief: Many consumers who get debt consolidation loans to pay off their credit card debts typically do not have the discipline to stop using their credit cards, and eventually, they start accumulating new, high-interest charges. In this scenario, many of these consumers end up having to deal with new credit card debts on top of their personal loan.
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Debt Management: A Better Alternative?
Debt management, whether it is through a for-profit or a non-profit agency - on the other hand, is a fundamentally different approach than debt consolidation loans. What debt management or debt consolidation involves is combining, or consolidating, high-interest credit card and unsecured debts into a single, more manageable, and more structured monthly payment made to a credit counseling agency.
When you enroll in a debt management plan, credit counselors review your outstanding debts and determine how much money you can reasonably direct towards paying off your debts. When they have a clear picture of your financial situation, credit counselors will generally develop a relief game plan that can help you reduce your debts.
What this typically involves is submitting proposals to your individual creditors asking for reduced interest rates, or waiving or elimination of late fees and other penalties. Creditors that agree to these proposals are then placed into the debt management plan.
The goal with debt management is to provide you a single, more manageable, and more structured payment plan so that you can manage your debts sooner than if you only continued to make the minimum monthly payments at higher interest rates. Unlike debt consolidation loans where there is a risk of accumulating new charges, a debt consolidation program can provide you a more affordable and more predictable payment plan that is designed to help you pay off your debts at a pace that you are comfortable with.
Your Debt Relief Options Side-by-Side
In comparing debt consolidation loans with debt consolidation, a loan may be a smart move for disciplined consumers, however, debt management or consolidation through credit counseling provides a way to consolidate high-interest debts into a single, more affordable payment plan, and may be a preferred way to pay off your debts on an accelerated and simplified schedule.
The bottom line is, no matter how overwhelmed you are with credit card debts, you may be able to find much-needed debt relief through a "for profit" or "non profit" means and get a fresh financial start.
Request a free debt relief analysis and savings estimate . Begin here by answering a few, simple questions.