A debt management program focuses on a proper management of your financial liabilities and continuation of your ability to repay your debts on time. On the other hand,a personal relief plan focuses on elimination of your debts so that you enjoy relief from your financial problems.
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Management of debt is advisable when you are beginning to face money problems. Relief options are best utilize when you know that you are facing money problems and need to escape it as quickly as possible.
If you do not prepare a debt management plan on time and follow it properly,you will end up facing personal money problems. The only option available is to go in for a personal relief plan.
Debt consolidation,conversion of unsecured debt into secured debt,interest holidays,alteration of the terms and conditions of repayment-all these options fall under the ambit of debt management programs. All this will help you plan your finances better and repay your debts by extracting maximum value out of the income you earn.
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On the other hand,you can go in for a personal relief plan like debt settlement which will help you reduce your debts by 50%-70%. Once the debt amount comes down,your monthly payment amount will be reduced and you will have extra cash in your hand.
Further,the personal relief plan aims for complete reduction of all your unsecured debt down to zero with in the specified time frame. This is not the purpose or goal of a debt management program. Rather,it tries to place you in a situation where you can continue using debts to boost your finances without losing control.
The difference between debt management and personal relief may seem technical and theoretical. Yet,it is very important because you may end up going in for a personal relief plan when all you need is a debt management plan. In such a scenario,your financial position will take a huge hit and you will find it difficult to overcome your problems.
It is impossible to rely on the advice of any specific service provider unless you are confident of getting impartial advice. Since you always face the risk of getting biased advice,you should check out independent sources of advice like the internet and also make use of debt relief networks to find the right service provider. All this will help you analyze your financial condition and choose the right remedy.-