Finding Solutions That Focus On Individual Needs

Our attorneys use their extensive experience to help our clients find solutions that focus on their specific needs and goals.

Finding Solutions That Focus On Individual Needs

How to manage debt with a debt management plan

On Behalf of | Sep 6, 2023 | credit card debt |

If you feel overwhelmed by debt, you are not alone. Many Americans struggle with debt. In times of economic uncertainty, people rely more on their credit cards or borrow money to make ends meet, improve their opportunities or access education.

If the debt becomes overwhelming, however, many Americans do not know how to regain control of their finances. They do not realize that a debt management plan will help them pay off the debt.

Why do people need a debt management plan?

In the U.S., different generations hold varying amounts of debt on average. Millennials carry about $78,000, Gen X carries almost $136,841 and baby boomers have approximately $96,000. If you are like the average American, you will benefit from a DMP.

Before you can obtain a debt management plan, it is important to evaluate your debt. Calculate all of your outstanding debt, monthly income and essential expenses. With the help of a professional, you will create a tailored debt management plan that you send to all of your creditors. The DMP includes your proposed monthly payments.

What are the benefits of a debt management plan?

A DMP provides a structured repayment plan, so you no longer have to juggle multiple payments. You make one monthly payment to a credit counseling agency, which distributes the funds to your creditors. In many cases, the credit counseling agency will negotiate with your creditor to lower the interest rates on your debts so you owe less money over time.

In addition to helping you pay off your debts, credit counseling agencies will also educate you on how to effectively manage your finances to help you avoid credit pitfalls in the future.

AV Preeminent Peer Rated for Highest Level of Professional Excellence
Rated By Super Lawyers Richard B. Rosenblatt
MSBA Maryland State Bar Association | The Law Offices of Richard B. Rosenblatt, PC | Calificanos
V.B.A. The Virginia Bar Association
DC Bar