The benefits of a debt management program
This is what clients usually get from enrolling in a debt management program:

Your total monthly payments are reduced by 30 to 50%
Their interest rates are typically reduced between 0% and 11%
In most cases, people successfully complete the program from 36 to 60 payments, so they will be out of debt in less than 5 years
This simplifies the payment of bills, since you only have one payment to cover all your debts.
This protects your credit from additional damages and can even help you build credit when you successfully complete the program.
The disadvantages of enrolling in a debt management plan
There are some situations that you need to understand before enrolling in a debt management program:

All credit card accounts included in the program will be frozen – so you will not be able to use these accounts while enrolled
You can not apply for new credit cards while you are enrolled – you can get approved for loans, but not open rotary credit
Your creditors must sign your acceptance so that the debts are included. For the main credit issuers, this is usually not a problem. However, smaller creditors such as payday loan companies may not be as willing to allow their debts to be included.
If you do not complete the program successfully, the payments you make are still accounted for eliminating the debt, but interest rates and penalties can be restored to what they were before you enrolled.


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