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Loans : Debt Management and Loan Management

Debt Management

Debt Ready is a debt management company who could give you a helping hand.

They have an informal process of negotiation with unsecured creditors to obtain a reduction in the repayment amount and / or a reduction in interest charges. The negotiation involves providing proof to the creditor that the individual is unable to meet all their contractual liabilities.

So you pay one "lump" sum monthly, which is in turn portioned out to your creditors. This monthly payment is in most cases lower than the sum of your individual account obligations. As the creditors are paid monthly, you will receive a receipt confirming the amounts paid to them.

Creditors recognize that people who enter a debt consolidation program are trying to repay their obligations in good faith. Creditors are more willing to extend favorable terms to such clients in the hope that the creditor will avoid the significant expense of turning the account over to a collections firm or avoid an extended drawn out process if the account holder goes through the expense of declaring bankruptcy.

Debt management does not supply you with another loan, they can provide a service that can help clear your debts, whether it be from personal loans, credit cards, retail department store cards, lines of credit, student loans, medical bills etc. They can reduce your monthly bills by up to 60%, and replace them all with one single lower monthly payment. The Personal Advisors at Debt Ready will negotiate to reduce your repayments with your creditors on your behalf.

They will negotiate a comfortable payment for you, giving you just one cheque to write each month. They do this by requesting that your creditors freeze or reduce their interest charges and therefore agree to a new lower monthly payment. You then make one monthly payment to Debt Ready, which in time will be dispersed to your various creditors.