Debt management is an alternative to debt settlement. Credit counselors might offer debt management plans. With these plans, you deposit money with your credit counseling organization and they pay off your unsecured debts with your creditors. As a condition of using the plan, you might need to agree not to take out any more credit.


Unlike debt settlement, debt management usually can’t reduce the principal owed. However, the credit counselor might be able to get your creditors to forgive penalties or fees and agree to lower interest rates.They also might be able to stretch out the repayment period, thus lowering your monthly payment.You should always check whether you could have gotten your creditor to agree to these reductions on your own. If so, you don’t need to use a debt management plan.
 Most reputable credit counselors are non-profits. You can find reputable credit counselors in a variety of places, including the following:universities or branches of the U.S. Cooperative Extension Service
housing authorities
credit unions
military bases
U.S. Trustee’s website: https://www.justice.gov/ust/list-credit-counseling-agencies-approved-pursuant-11-usc-111


, Before beginning a debt management plan, you need to figure out how much you can pay. You won’t be a strong negotiator if you initially agree to pay an amount of money you can’t afford. Go over your income and expenses to find out what is the most you can pay on your debts.Remember to list income from all sources.Income includes wages and tips but also Social Security payments, disability payments, alimony, etc.
Expenses are things like your rent or mortgage, groceries, utilities, health insurance, and educational expenses.
Also think about generating more income, possibly by working a part-time job., If debt management works for you, then you must make your monthly payments to the credit counselor.The counselor then forwards on the payments to your creditors. Debt management plans often take four or more years to complete.


Check with your creditors that your bills were paid. Always stay on top of whether the credit counselor is doing what they say they will.
Consider debt management instead.
Find credit counselors.
Check how much you can afford to pay.
Make monthly payments.
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