Debt Management program is a guide or solution of all type of debt problems. There are various ways to come out from debt after applying for debt management program. Let’s discuss some of the programs offered by debt management program.1) Debt consolidation: Those who are not in worse position in respect of debt can go for this program. This program will put together all your unsecured debt in a single account and you will have to pay only one monthly payment. Here your late fees and other financial charges will be waived off and according to past experience it is found that 30%-40% of the total debt reduces. Now you should have a question that what will the condition in your credit report if you put on this program. Not to worried about because it will not show anything negative in your credit report. Only it will show that you are in a “consolidation program” and once you paid off your all debts it will show as “paid off”.
2) Debt Reduction or Debt Settlement: People who are in worse position can apply for debt reduction program. The word “reduction” itself telling about the program i.e. the total amount of debt will be reduced by a certain amount and most of the time it is near about 40%-60% of the total amount due. Your credit report will have a negative impact in this case.
2) Debt Reduction or Debt Settlement: People who are in worse position can apply for debt reduction program. The word “reduction” itself telling about the program i.e. the total amount of debt will be reduced by a certain amount and most of the time it is near about 40%-60% of the total amount due. Your credit report will have a negative impact in this case.
