Debt Management : Financial Management

2696 Words Nov 21st, 2014 11 Pages
Debt Management Information
According to Bankrate.com, no matter the cause of your debt, you learn to live on a budget day by day. Another way to descried debt management is that it is a unique strategy developed to help a debtor manage their debt. Debt management is a wonderful thing because there are professional people who actually help others control their money to help them stay out of debt. This strategy is usually developed or implemented by an organization or company on the behalf of the debtor. That is because the debtor is unable to sufficiently manage their debt on their own, because they’re either overwhelmed by the amount of debt or because of the lack of knowledge.
When the professionals help their customers budget their
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Credit counseling is a process that involves offering education to consumers about how to avoid incurring debts that can not be repaid through establishing an debt management budget or plan (Miranda, 2012). “Reputable credit counselors can help you create a money management plan and a debt pay down plan, as well as provide free resources and workshops related to money management”(Miranda, 2012). If you find a trustworthy credit counselor and commit yourself to the process, credit counseling can be a very positive experience. As long as you are open and honest about your credit, the counselor can help you in a more beneficial way
People get into debt by many different reasons. According to Bankrate, the top ten reasons to get into debt is by reduced income/same expenses, divorce, poor money management, underemployment, medical expenses, saving to little or not at all, no money communication skills, banking on a windfall and financial illiteracy. All of these are multiple of ways which people become to be in debt in some way, shape or form. Some of these ways are ways in which people can not help, such as divorce, on the other hand, some ways can be avoided by that individual.
When it comes to debt in reduced income or same expenses, too often people delay bringing expenses in line with a reduction in income as a host of well reasons and let debt fill the gap. For example, a young couple just got married and they move into a nice home. They first spent

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