Financial Management : Debt Management

1650 Words Mar 30th, 2015 7 Pages
Debt Management in Alabama

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Introduction
Debt management involves utilization of debt management plans and it stands for: the formal understanding between a moneylender who addresses the terms of any exceptional obligation and a debtor holder. DMPs support the account holder to recoup money control by reducing unsecured and outstanding debts over a given time. The procedure can secure a lower general interest rate, longer reimbursement terms, or a general decrease in the debt itself (Federal Trade Commission, 2005).
A Credit advising organization and again arrange purchaser DMPs for the benefit of the obligated individual. These associations work with the record account holder to set a budget based on the debtor ' regular expenditures and income to address the obligation. This financial plan will incorporate one customary bill payment that is allocated over the bank. These agencies talk with creditors to cut down rates and payments on behalf of the debtor (Trautman, 1995).
Specifically, I will now narrow down to debt management in Alabama. Debt management is carried out in Alabama by the Office of Debt Management in addition to the available Credit Counselling Agencies available. This office takes the responsibility to provide analysis and advice to the Assistant Financial markets Secretary on matters identified with the Treasury 's obligation organization approach, the issuance of Treasury and administrative financial securities, and monetary…

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