Committing to a Debt Management Program

After speaking to the ladies from Smart Cookies and listening to advice from Gail Vaz-Oxlade, I was happy to have Consolidated Credit share their thoughts on debt management and sticking to it to free yourself of crippling debt.  You CAN do it.  I am now working hard at budgeting and watching where my money goes, to ensure I never get in debt trouble.

 

A debt management program allows consumers who are in financial distress caused by too much credit card debt get back on the right financial path. A debt management program allows you to consolidate unsecured credit card debts into one low monthly payment that’s easier to manage within the limitations of your budget. In addition, since the interest rate applied on the debt is so much lower than the rates on high interest credit cards, consumers often get out of debt faster even while paying less each month. On average, a debt management program is successfully completed and a consumer can be completely debt-free in about five to seven years.

The challenge most consumers face with a debt management program comes in the commitment it takes to see a debt management program through to completion. This is not a unique issue that only applies to a debt management program, since this is often the problem consumers have with almost any credit card debt solution you can choose. You have to stick with the solution and see it through to the end in order to eliminate your debt completely. Otherwise, if you start spending on credit again and return to your bad credit habits, the situation could get even worse than when you started looking for a solution.

To use a debt management program effectively, you have to make a commitment to see it through to completion. While the standard five to seven years on a debt management program may seem like a long time, when you consider that the same amount of debt would take decades to pay off with traditional payment methods, it’s actually not that long. What’s more, during that time you are still free to make important financial moves that will help you reach your goals. You can get a new mortgage if you need to buy a home and get a new auto loan if you purchase a car or truck.

It’s important to note that any credit cards included in the debt management program will be frozen and you will not be able to apply for new credit until you complete the program. All of the credit card accounts included in your program will be frozen until you have made your last payment, at which time the accounts are reinstated. You will have to avoid credit for a few years, but the credit counselling support that comes with your enrolment can help you learn how to budget so you can live without depending on credit.

The important thing is that once you complete the debt management program successfully, you will be free of your unsecured debt burden and back on the road to a bright financial future. With your credit card debt under control, you can start rebuilding your credit and making progress to achieve your long-term financial goals.

 

This guest post was provided by Consolidated Credit.