 TITLE: The Difference Between Debt Consolidation Loans and Debt Management Programs CONTENT: What Makes Them Different?\n--------------------------\nThe goal of both of these debt relief methods is the same: to help you regain control of your debt and save some money along the way. The tactics used, however, are significantly different. Debt consolidation can be done on your own, and requires the opening of a new account, whether a personal loan or new credit card. A formal debt management plan, on the other hand, is created with a credit counselor and doesn't involve taking on any additional lines of credit.\nRepayment under these plans looks different too. With a debt consolidation loan, you will make regular monthly installment payments to your new loan. With a balance transfer card, you'll choose how much you want to pay each month at or above the card's minimum payment, for an indefinite time period, ideally until the debt is paid off. Depending on how much debt you had across different accounts and how much you were approved for your debt consolidation loan or for your balance transfer, you may have to continue to pay down other accounts in addition to your consolidation payment. If you have a balance transfer card that offers 0% interest on transfers during an introductory period, you should attempt to pay off your debt before the promotional period ends and the interest rate rises.\nA debt management plan is not a loan but is more of a helpful service generally offered for a low cost by nonprofit organizations. With a debt management plan, your monthly payment typically goes to your credit counseling agency. In most situations, the debt management company will make your monthly payments for you and you'll pay them a single payment that covers all your monthly debt bills. There are some cases where a credit counselor will help you draft a repayment plan but won't take over repayment for you. END