Improve Your Financial Well-Being with a Debt Management Plan from Suffolk County’s Debt Consolidation Expert, Your Long Island Bankruptcy Lawyer
Are you struggling financially? Do you live in the East Hampton, NY area? If so, then you’re in the right place. Richard S. Feinsilver, Esq. of Your Long Island Bankruptcy Lawyer specializes in all matters that relate to finances, including debt consolidation, debt settlement, and debt management. In the more than 25 years that he’s been in practice, Mr. Feinsilver has successfully helped more than 7,500 clients throughout the East Hampton, NY area recover from financial hardship. Stop letting debt control your life; let Richard S. Feinsilver, Esq. help you consolidate debt and guide you to a brighter financial future.
Are you struggling with an overwhelming amount of debt? Are credit card bills, student loans, personal loans, utility bills, and other types of unsecured debts piling up? Are you having a hard time keeping track of your payments and making your minimum monthly payments? Have you missed payments before? If so, then a debt management plan might be a good option for you. What is a debt management plan, how does it work, and how can it benefit you? Read on to find out the answers to these questions and more!
What is a Debt Management Plan?
As the name suggests, a debt management plan (a DMP) is a structured repayment plan that can get you out from under your debt and rebuild your credit score. With a debt management plan, you’ll make a single monthly payment that will better accommodate your financial needs and help you get out of debt faster. When you take part in a DMP, a financial expert will also teach you how to manage your money more effectively so that you can avoid falling into another overwhelming financial situation.
A financial expert assesses your financial situation – the current amount of debts you’re carrying and the amount that you can pay to settle debt –and negotiate with creditors on your behalf to establish a repayment plan that better suits your needs. An advisor will also take over repaying your debts (with the money you provide) until your creditors are fully repaid. In short, the objective of a DMP is to help you regain control of your debt. If executed properly, debt management can help you avoid debt settlement and bankruptcy.
How does It Work?
When you enroll in a debt management plan, a Suffolk County financial expert will mitigate the repayment of your debts. He or she will calculate the total amount of debt you owe compared to the amount of money you can comfortably afford to allocate toward your payments. Your debt management advisor will consult with your creditors to arrange a more favorable repayment plan; reduce your existing interest rates and waive late fees, for example. Additionally, a DMP facilitator will work with your creditors to devise a monthly payment that you can comfortably afford to spend, usually over a period of five years. If the creditors agree to the new terms and conditions that have been proposed, you’ll make a single payment to the facilitator of the plan each month, and he or she will then pay your creditors accordingly.
A debt management plan isn’t debt consolidation, per se, but it is similar. Like debt consolidation, you’ll only make a single monthly payment as opposed to multiple payments; however, your financial advisor will distribute that single payment to your creditors. With debt consolidation, a single low-interest loan or balance transfer credit card is used to repay multiple debts and then you’d repay the single loan or credit card balance.
When you enter a debt management plan, the credit accounts that have been entered into the plan will be closed and you won’t be able to use them. Furthermore, you’ll be advised to avoid opening new lines of credit, as the objective is to pay down your existing debts, not create new ones.
The Benefits of Debt Management
A debt management plan offers several benefits, some of the most notable of which include:
- A single payment. Juggling multiple bills can be tough. Trying to keep track of due dates and ensure that you pay everything on time, writing out several different checks or logging into multiple accounts is certainly overwhelming. With a debt management plan, you’ll make a single payment to your advisor and he or she will distribute the appropriate amount to each of your creditors.
- More favorable repayment terms. As mentioned, the facilitator of your debt management plan will negotiate better terms with your creditors, such as lower interest rates and the removal of any late fees that your accounts may have incurred. With more favorable repayment terms, you’ll pay more toward the principal balance and less toward interest and fees.
- Faster repayment. It can take years, if not decades, to repay revolving lines of credit. Because a debt management plan achieves more favorable repayment terms, more of your monthly payment will go toward the principal balance, so you’ll be able to pay down your debts faster. Plus, most debt management plans are designed to be completed over a five year period
- A better credit score. While the results will vary from person to person, generally, a DMP is beneficial for your credit score. Since you’ll be paying back all of the debt you owe without establishing new lines of credit that could bring your credit score down ( a balance transfer credit card or a debt consolidation loan, for example), your credit score can certainly benefit.
- Reduced stress. A single monthly payment, more favorable repayment terms, faster debt settlement, a higher credit score; all of these factors combined translate to a lot less stress. Add to that the fact that you’ll stop receiving collection calls once your creditors approve to your DMP and you’re bound to feel a lot less stressed.
- A brighter financial future. All of the above-mentioned benefits mean that your financial future will be a lot brighter after you complete a debt management plan. Additionally, your advisor will provide you with useful tips that will help you manage your future debt more effectively so you can avoid financial trouble down the road.
Your Long Island Bankruptcy Lawyer: Suffolk County’s Debt Management Expert
If you’re in over your head financially, a debt management plan may be the answer you’ve been looking for. To get your finances back in order, contact Suffolk County’s leading financial expert, Richard S. Feinsilver, Esq. of Your Long Island Bankruptcy Lawyer. To schedule a consultation, call 516-873-6330 today!
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