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A debt management plan is a tailored strategy to help you repay outstanding debt and financial obligations without using a new loan. Typically, credit counseling agencies work with creditors on your behalf to determine a debt management plan that fits your financial circumstances. Heres how debt management plans work and how to decide if one is right for you.
Key Takeaways
- Debt management plans are structured repayment plans to help you repay outstanding debt.
- In most cases, credit counseling agencies negotiate payment plans on your behalf.
- It also involves you restructuring your budget to pay off old debt, manage your current finances, and find other ways to become financially secure.
Pros and Cons of a Debt Management Plan
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Read the full article at: https://www.investopedia.com/debt-management-plans-8426688