M.tefa
Member
Cash: $ 1.85
Posts: 15
Joined: 18 Feb 2007
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At times of severe financial crisis Debt Management Plan (DMP) helps you to manage your funds and also protects you from the humiliation of debt struck conditions. The famous American author Washington Irving in ‘Wolfert’s Roost’ addressed dollar as Almighty and described it as the great object of Universal devotion. A man who can manage his dollars well can manage his life as well. A Debt Management Plan (DMP) teaches you how to manage your dollars well and lead a prosperous life even during times of financial crisis. Debt Management is a process that allows you to compile your multiple debts into one amount and work out a repayment scheme where you pay the debts in affordable monthly installments. Debt management companies usually negotiate with your creditors to reduce or eliminate high interest charges, delete late fees and other penalties, and update your past due accounts to show current status.
Debt Management Plan has gained immense popularity in the past couple of years with the striking difference they created in gifting hundreds of people a debt free life. In a recent survey it was reported that almost 32% client filed bankruptcy. Additionally almost 10% reported that they are going to file bankruptcy. However, the remaining 58% clients are opting for Debt Management Plans which they find is highly beneficial. The other half who opted for bankruptcy did not prefer to manage their debts and work on a new repayment scheme.
Clients who successfully completed a DMP felt that it provided a wealth of different benefits, both for the present days and the future ahead. Almost 85% of clients felt that the ability to payoff their debt was beneficial and almost 55 % felt that the plan helped stop collection calls. In the long run, almost 32% of the clients felt that the plan helped them balance their budget and almost 41% felt that they learned new budgeting skills. A total of almost 38% felt that they improved their credit worthiness and almost 51% felt that they improved their overall financial status.
With the Christmas festivities happening in the recent past Debt Management Plans seems to be on an upraise. It is reported that millions of Americans ran up billions of dollars in spending on their credit cards in the past month. The issuers of two major credit cards, MasterCard and Visa, reported some record numbers, according to reports published by CNNMONEY. Reports also cited Visa reporting a 31.8 percent increase in spending when compared to 2003. MasterCard processed a record number of transactions at 914 million, totaling $60 billion, up 12.9 percent from last year. The statistics reflects the confidence and merriment among the consumers. However, the financial analysts at this juncture can smell heavy financial burdens that can cause a wrinkle for people who are not in a position to pay back their debts. With this trend, it is expected that the majority of the population undergoing debts will opt for Debt Management Plan which will show a surge in this program like never before.
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Sun Feb 18, 2007 1:21 am |
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pdx
Member
Cash: $ 1.85
Posts: 19
Joined: 09 Nov 2010
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Don't buy things that you don't need.
Check if you can afford things at http://caniafforditnow.com/ before making a purchase. At-least this will prevent you from getting into future debt.
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Wed Nov 10, 2010 1:22 am |
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Roksana
Full Member
Cash: $ 10.30
Posts: 59
Joined: 26 Oct 2010
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Debt management primarily aims to manage all existing debts in a manner well suited to the debtor. It is extremely beneficial for individuals who are heavily indebted and face problems repaying debts. A debt management plan is put forth by the debt management company according to the needs of the debtor. This plan needs to be agreed on by a creditor as well, following which the debtor has to deal with just one affordable payment every month. Monthly payments and repayment terms are structured according to the debtor's circumstances.
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Fri Nov 12, 2010 3:29 am |
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MrCashFlow
Contributing Member
Cash: $ 6.25
Posts: 31
Joined: 27 Sep 2010
Location: East Coast
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Is it even smart to put yourself in the position to have to manage debt? Credit is to be used as a leverage tool not extra cash.
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Sat Nov 13, 2010 6:23 am |
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cccfree
Full Member
Cash: $ 7.80
Posts: 51
Joined: 08 Mar 2011
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A debt management plan is a useful tool that is used by credit counselors to negotiate a lower rate on your debt, and well put you on the right track to pay off your debt faster!
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Tue Mar 08, 2011 6:17 pm |
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jeffreymint
Preferred Member
Cash: $ 26.80
Posts: 131
Joined: 04 Feb 2011
Location: Kissimmee, FL
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I have to agree, never buy things that you do not need. Be spend-thrift. Be able to live within your means. Train yourself to be satisfied with less, with this you can save more.
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Mon Mar 21, 2011 2:03 pm |
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stepbystep2
Contributing Member
Cash: $ 5.00
Posts: 25
Joined: 17 Mar 2011
Location: New York
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I love talking about money. So here are my tips that can help anyone in debt.
1) Make a personal Income Statement- What you have coming in to the household in regards to income.
2) Create a balance sheet- Showing what you own minus what you owe.
3) Negotiate with your creditors to lower your interest rate. Call them and ask if they can lower it for you. They will do it for you depending on how you ask. In my case I would grab a pre-approve offer for a credit card lets call it credit card company B, ask credit card A if they can match credit cards company B's offer. They are likely to fold and give you the rate reduction as they don't want to lose your money.
4) Once you have the income and balance sheet made you now know what you are working with as far as your income to debt ratio.
5) Most people pay their bills first. You must pay yourself first.
6) Make more money
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Tue Mar 22, 2011 1:03 am |
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jennypaul
Contributing Member
Cash: $ 6.60
Posts: 33
Joined: 12 Apr 2011
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Debt management is not a easy task, so we must be very laert about debt management, if someone wants to become debt free then the debt management is perfect solution for that, however Debt consolidation is also a good option for solving bad debt problems. In between if you need some urgent money then cash loans are available for that situation.
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Tue Apr 12, 2011 11:29 am |
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Zubin
Member
Cash: $ 3.80
Posts: 19
Joined: 15 Apr 2011
Location: dsfdfdf
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Yes, Jenny you are right debt management is quite difficult but not impossible. Debt consolidation is a helping hand for persons who think that their debts are become difficult to pay off.
No fake signatures - thanks
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Wed Apr 20, 2011 7:55 am |
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jimmyjhonson
Contributing Member
Cash: $ 6.60
Posts: 30
Joined: 19 Apr 2011
Location: helth
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Debt management and debt management programme play a vital role in helping individuals and companies to deal with the State of their finances. But, while we do not understand that given the various debts from various lenders can become a burden on one day.
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Mon Apr 25, 2011 1:09 pm |
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