Debt Management Plan

The purpose of a debt management plan is to negotiate with creditors to lower your interest rate as well as your monthly payments. Mortgage loans and car payments are not included, because there is collateral involved. Your house can get foreclosed. Your car can get repossessed. If you stop paying your credit cards, all the credit card companies can do is increase your rates. If you're unable to afford those increased payments, they get nothing.

Negotiating a debt management plan with your creditors is possible, but it can take a few weeks to take effect. That is, of course, if they're willing to work with you. Most of the time people enlist the help of third-party organizations to help with their debt management needs.

At Premier Debt Help Canada, we could provide you with a healthy alternative to a debt management plan. With our debt settlement services, we could eliminate you debt in a matter of 12-36 months! A debt management plan could take much longer. Sign up now for your FREE consultation! Get started today!

Debt management companies, otherwise known as credit counseling agencies, provide Canadians with an alternative to bankruptcy. These debt management companies will work with your creditors themselves to negotiate lower interest rates, lower monthly payments, and cheaper fees.

Before you choose to go with a debt management company, it's good to calculate how much you really owe. Tally up everything you owe on credit cards and other outstanding debts. If you're not in dire straits financially and your credit score is good, you may not even need the assistance of a third-party organization. If you can make the payments, but are looking to reduce your debts, you can contact the creditors yourself and request a lower interest rate.

A good debt management company will only suggest you pay what you can realistically afford. The debt management counselor will evaluate your priority expenses (i.e.: mortgage or rent, food, utilities) and come up with an affordable debt management plan. But sometimes you won't be so lucky.

A lot of the so-called legitimate debt management counselors work for the credit card companies themselves. The more money the creditors get paid, the more money gets poured into their pockets. Therefore, some of these debt management companies may not give advice that's in the consumer's best interest, but what will be most beneficial to the company.

Debt management companies also tend to charge up-front fees. If you're fortunate, you'll find a not-for-profit debt management counselor, who will charge you a fee of $50.00 or less. Some of the not-for-profit debt management companies don't charge any fees. However, like many businesspeople, there are those who are simply out to get you. Sometimes you'll pay a significant up-front fee, only for the debt management company to refer you to another company. Why did you pay for the service in the first place?

Another danger of debt management companies is the effect they have on your credit. In Canada, the fatal R7 credit rating will stay on your credit report for the next two to three years, after you're done with the debt management program. When lenders see that you're going through or have gone through a debt management program, they may be resistant to doing business.

Before choosing a debt management company, it's wise to do some background checking or investigating, if you will. The best debt management services are frequently part of the National Foundation for Credit Counseling (NFCC) or Association of Independent Consumer Credit Counseling Agencies (AICCA). Beware of debt management companies that award commissions to their employees. It would be smart to set up a free consultation with the debt management counselor. Before any money is exchanged, be sure to inquire about any and all fees you'll be paying. Ask for a contract to be printed out. Like any business agreement, please read the fine print before signing anything.

At Premier Debt Help Canada, you don't have to go through the hassle of a debt management plan. We charge NO up-front fees and our debt settlement services do not have the same negative effect on your credit rating. Plus, we could reduce your monthly payments up to 50%. In a matter of 36 months, you could be well on your way to rebuilding your credit. Call 1-877-567-1023 or fill out our online form to sign up for your FREE consultation!