Debt Managment Plans

You've seen them avertised on-line and on televisions.  "We'll help you get out of debt in
a fraction of the time."  They promise to reduce interest payments and lower your monthy
payment.  The amazing thing is that they actually can do exactly that.  But before you
sign on the dotted line, you should understand what it is that you are doing and the
consequences of your action.

The complete article is available in PDF format but here are some highlights.

While they work well for many people, they are not suitable for the vast majority of debtors that
seek such services.

Creditors don’t give up their interest rates or reduce payments without a good reason.  They
believe that a person who intends to participate in a debt management plan is otherwise headed
for bankruptcy.

Your credit report may suffer.  You are NOT paying as agreed.  You are paying less or at a lower
interest rate than your original agreement with the creditor.  Creditors can report debt
management activity as negative.  

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