Is there any difference between debt management and consolidation program?
Take out a consolidation loan
Take out a consolidation loan to pay off your debts. Make sure you are regular on your new loan.
Submitted by Sanders Patricia on Fri, 01/19/2018 - 05:00
You'll get a customized
You'll get a customized budget plan in the debt management plan as opposed to a debt consolidation program.
A debt management program or
A debt management program or a DMP is usually offered by a credit counseling agency when budgeting tips are not enough for a person to solve his/her financial problems.
Debt management programs
Debt management programs offer structured principle repayment plans that enable you to repay debt faster than you might be able to on your own. It has benefits such as lowered interest rates and waived fees.
On the other hand, debt consolidation involves opting one big loan and using the money to pay off several small unsecured loans, like credit card bills, utility bills, medical bills, etc. The lender might be a bank, credit union, or online loan company and the expected payoff time is 2-5 years.