Debt Management
American Debt Foundation
http://www.americandebtfoundation.com
What is
debt management ?
Debt Management is a system to help those in debt become debt free.
Our Debt Management Plan is a simple, systematic way of dealing with
your debts.
Our clients pay us a single, monthly fee
and we then distribute this between each of their creditors. This means
all their debts are consolidated into one single, affordable payment.
Not only are they consolidated into one monthly payment, in almost all
cases we can reduce the total amount they pay each month by up to 75%.
This is due to the fact that their creditors know they have a
debt management company
working on their behalf and we can work to get the creditors to lower or
freeze their interest rates. Also, they no longer have the stress of
dealing with their creditors; we do it for them!
The simple payment they pay is based on
their income and expenditure. This means that legitimate living expenses
such as mortgage, phone and food are removed from their income so they
only pay what they can afford.
Difference between debt
management and debt consolidation
The principle behind a
debt consolidation loan is
that if a person owes money to multiple creditors, they borrow a large,
lump sum to repay their creditors and are then left with one creditor
and one monthly repayment. The idea is that the repayments on this
single, larger loan will be lower than the sum they are currently
paying.
This works very well if the person can
easily afford the repayments and they are just looking for a way to
simplify things and bring down the interest rates. However, there are
many people that struggle to meet the repayments each month. Some of
these even find that their outgoings each month exceed their income.
These people are classified as being in debt and a debt consolidation
loan will not actually get them out of debt and will not alleviate the
problem. A debt management plan
is a method for reducing their debt and allowing them to become debt
free. It will consolidate all their repayments into a simple monthly
payment and it does not involve them taking out another loan.