Call Us Today! 1-877-570-1313

What is Debt Management Credit Consolidation?

Debt management is the process of consolidating your unsecured debts like credit cards into one monthly payment allowing you to reduce fees and interest rates. The debt management credit consolidation process is typically handled by a debt management company (also often called debt consolidation or credit counseling company) who has established relationships with all the most common large credit card companies. They are able to combine your debt payment with that of its other clients for a better interest rate than you will likely have.

A Mutually Beneficial Relationship
The debt management process is looked upon favorably by the credit card companies who understand that people with too much debt need advice and assistance to repay their bills. The debt management companies provide that assistance to help people get back on their feet. Without the debt management companies, the credit card companies would likely lose a lot of money due to the fact that many people in trouble would opt for debt settlement or even bankruptcy.

Budgeting Assistance Too
The debt management credit consolidation process entails a healthy dose of financial education for those who wish to take advantage of it as most of these services are offered by non profit debt agencies. Non profit means that the government allows them to not pay Federal income tax in exchange for offering a service that benefits society. So in a way part of thier mandate is to offer good financial educational materials and information to help you get out of debt.