| Debt management is a service provided by the | | | | end result of all three is same that is, |
| financial market, which handle and manages | | | | managing debts. |
| debts. It is basically availed when an | | | | |
| individual is burdened with numerous debts, | | | | In order to avail debt management, an |
| and finds difficulty in managing and repaying | | | | individual will be required to furnish |
| them. | | | | certain personal and financial details. Such |
| | | | as: |
| Today debt problem is going common these | | | | |
| days, so in order to serve all most of the | | | | - Identity proof |
| lenders and financial institutions provides | | | | |
| debt management. Debt management is a wide | | | | - Address proof |
| term used to handle debts. It also includes | | | | |
| various other services which forms the part | | | | - Nature of debt problem |
| of debt management. They are: | | | | |
| | | | - Employment details |
| - Counseling sessions | | | | |
| | | | - Income earned |
| - Negotiation with the creditors | | | | |
| | | | - Structure of common expenses etc. |
| - Budgeting | | | | |
| | | | Generally, by evaluating these points the |
| - Guiding etc. | | | | credit advisor suggests the way to come out |
| | | | of the debt problem. |
| The financial institutions providing debt | | | | |
| management, has a panel of financial and | | | | Usually, there are also other options |
| credit expert's who listens to the problem of | | | | available, which will make an individual debt |
| an individual. It is usually done in | | | | free such as bankruptcy etc. But, they are |
| counseling sessions provided by them. After | | | | considered as bad credit so it puts a bad |
| listening to the problem they suggest the | | | | impact on the credit report of an individual. |
| best possible solution to an individual in | | | | Thus, these modes are not recommended. On the |
| order to overcome debt problem. The lender of | | | | other hand, availing debt management helps in |
| debt management also helps an individual in | | | | improving the credit score as all the debts |
| repaying their debt as they negotiate with | | | | are repaid. |
| the creditors on behalf of an individual | | | | |
| availing debt management. In this way his | | | | Today, debt management can be availed through |
| amount of debt gets reduced but such | | | | online mode also. Online method of availing |
| reduction lies in the interest rate or | | | | debt management helps in saving time, money |
| penalties of the loan but not in the | | | | and efforts. |
| principle amount. | | | | |
| | | | And, once an individual get rid off the |
| As per the study there are different modes to | | | | debts, then he must always make an effort to |
| manage debts that are, through loan, mortgage | | | | avoid such debt situation which is only |
| or remortgage. It is true that there are | | | | possible by proper planning and budgeting. |
| different three modes of debt management but | | | | |