How to Manage your Debt

Just came across a friend, and she told me she had gotten into a debt of $100K! I was stunned, and I supposedly believe anyone would. Someone who lives the same life as me has gotten into such a web, and how is that possible. I am guessing a lot of us get caught in it, and somehow it just happens. Everyone has a high probability to fall here, be it someone who earns thousands or billions.

Paying personal debt

Why Do People Get Caught in the Debt Cycle?

What triggers this situation in people’s lives? I am pretty sure no one wants to purposely get into it, but it happens anyway.…

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Can You Use Credit While Enrolled in a Debt Management Plan?

A debt management plan (DMP) is one possible path forward. But of course, you have questions. Like: How does debt management work? How long does it take? Is it true you have to stop using credit while enrolled in a DMP?

Keep reading to learn more.

Debt Management Plan (DMP)

What to Expect from a DMP

Enrolling in a DMP will first require you meet with a credit counselor. To get things started on the right foot, you’ll want to first do your research and choose a reputable non-profit credit counseling agency as your partner. During that meeting the credit counselor will take an in-depth look at your financial situation and may determine you’re eligible for debt management.…

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Why It is Dangerous to Keep Extending Debt Collection Time Frames

In the movies, debt collectors are thuggish, scary-looking individuals who hound consumers and threaten them with shame and physical harm. In the real world, unless of course, you borrowed from the mob, your debt collector is more likely to be a polite, well-dressed professional who will talk to you nicely with a sprinkling of legalese.

Debt collection

As a debt collector, the first thing you should do when you contact a debtor is to tell them what their rights are. Let them know that they can legally challenge their debt so that they don’t feel bullied or trapped. Then inform, clearly, of how much they owe, who they owe it to, and when the debt is due.…

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