First Debt Management - Debt Management Programs

Debt Management Programs

Are you in the red with your finances? Do you want to be in the black? The right debt management programs can help you get there. You may even be ready to receive a little enlightenment from one of the very popular Christian debt management programs.

So Many Debt Management Programs....

so little time. Meaning there are so many debt management programs that will get you out of debt in so little time. There are at least three debt management programs that can get you out of debt in five years or less, and we've outlined them below:

Debt Consolidation - The most popular debt management program. A debt consolidation program involves negotiation to get your unsecured debt balances and interest rates lowered. Then the new, lower balances are combined and you make one monthly payment to the debt consolidation company, which they distribute among your creditors. Because of the reductions, you can become debt free in about five years. Some creditors may report participation in this type of plan to the credit reporting agencies, but after receiving a few on-time payments, they might agree to report the accounts as current.

Debt Consolidation Loan - This is a loan given to you to pay off your unsecured debts. Although you pay off your unsecured debts immediately, you still have the loan to pay back. The benefit is that the interest rate on the loan is so much lower (generally half of what you're paying now) that you can have it paid off in five years or less.

Debt Settlement - Allows you to pay off your debts at 30-50 cents on the dollar. Generally, you have to have the money all at once, but there is more than one debt management service that will give you one to three years to pay it off. This may appear as a slight "blip" on your credit report.

A couple of other debt management programs take a little longer to get you out of debt, but they will still save you a lot of money. Here's what they are:

Debt Consolidation Mortgage - This plan allows you to borrow from the equity in your house to pay off your unsecured debts. Your payment is combined with your mortgage, and you get the same interest rate as your mortgage. In some cases, the interest is even tax-deductible (check with your tax advisor to see if this will work for your tax situation). Another benefit is that this appears on your credit record in the same way as refinancing your house would, because basically, that's what you're doing.

Student Loan Debt Consolidation - This combines all of your outstanding student loans into one and locks in a much lower, fixed interest rate for you. Your monthly student loan payments are cut in half, too, because you are given more time to pay them off.

To participate in any of these debt management programs, you'll need to contact a debt management company first. They will know whichdebt relief programs are best for you.