Essay about Benefits And Disadvantages Of Debt Management

838 Words Nov 11th, 2016 4 Pages
When people are in debt, there are many debt management companies that are willing to help them. They manage the debt that someone is in by taking one monthly payment; working with the lower payments and lower interest. But the person can also manage their own debt, without help of others. It is not an easy task, but people are able to do it. According to Dave Ramsey, good debt management is 80% behavior and 20% head knowledge. There are many advantages and disadvantages about debt management. It won’t be easy getting out of debt, but it is worth getting out of the debt. There are many advantages to having a debt management plan. The person who is in debt has to be flexible, that is the main focus. There could be a point where things change and they have to adapt with everything. When the budget is made, it is ensured that they will have enough money to pay other expenses (Graveson). While people pay the smaller amounts, it could take a while for them to pay it off, the interest cost could be more in the long run. Also, it could help your credit, even though every financial situation is different. Also, people will be able to avoid bigger financial problems so people can have a peace of mind. When getting into the debt management program, debts could be paid in full and have the finance back together. Another advantage is that people would get out of debt faster. Paying less each management program could get someone out of debt, but getting into the debt…

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