If youre struggling to pay credit card bills every month but cant seem to get any traction, a debt management plan might help. You make a single payment to a credit counseling agency, which then pays your creditors on your behalf.
A debt management plan wont cut the amount you owe, but it might result in lower payments overall if a credit counselor can get your creditors to agree to a lower interest rate or to drop some fees and thats what usually happens. You also may be able stretch out payments. A debt management plan usually lasts from three to five years.
Debt management plans can lower your interest rates and make your payments more affordable, says NerdWallet columnist Liz Weston. But many people still ar…
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