Debt Management

Debt management means organizing, controlling, and repaying your debts in a structured manner so you can become debt-free more quickly and at a lower cost.

It can be something you do yourself or through a professional program.

What It Involves
   •    Assessing your debts – listing balances, interest rates, and due dates.
   •    Creating a budget – making sure you know what you can realistically pay each month.
   •    Prioritizing repayments – e.g., highest-interest first (avalanche) or smallest balance first (snowball).
   •    Negotiating with creditors – asking for lower interest, fee waivers, or payment plans.
   •    Consolidating debts (sometimes) – rolling several debts into one loan with one payment.
   •    Sticking to a plan until debts are paid off.

A formal “Debt Management Plan” through a nonprofit or credit-counselling agency:
   •    Combines your unsecured debts (like credit cards) into one monthly payment.
   •    Agency negotiates lower interest rates and fees with your creditors.
   •    You pay the agency each month; they pay your creditors.

It’s not a loan (unlike debt consolidation). It’s a structured repayment plan.

Benefits
   •    Lower stress and a clearer picture of your finances.
   •    Possibly reduced interest/fees.
   •    One monthly payment instead of many.
   •    Path to becoming debt-free sooner.