What does a debt management plan mean?

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asked Aug 13, 2020 in Other-Finance by IsiahHenderson (24,090 points)

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answered Aug 13, 2020 by RoseannDillon (14,340 points)

Debt management plans aren't loans, meaning they do not provide you with money to repay your debts. It instead is a system that works in a particular way to ease the repayment period. Debt management companies communicate with creditors to reduce your interest rates and penalties. The formal agreement signed by you and the creditor allows you to have around 3 to 5 years to pay off your obligations. Absolution of your debts is not a part of the debt management company's duty. This whole plan helps people have control over their finances, which might have been lost at some point. It also reduces unsecured debts such as student loans, credit cards, and medical bills. Visit iva to know more about Debt management plans.

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