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Getting Lower Interest Rates with a Debt Management Plan

By Expert Author: Ronnica Rothe | Article Abstract
Word Count: 414 words | Views: 22 view(s)
If you have taken the opportunity to talk to a credit counselor, you may have found out that a debt management plan is the right debt consolidation solution for you, or maybe you have done the research yourself and have come to the same conclusion. There are several things you should know about how to receive the maximum benefit from a debt management plan.

When talking to a credit counselor about a debt management plan, they will not be able to give you the exact interest rates that your creditors will agree to. Instead, they can estimate your benefits based on their past experience with those creditors and on the accurate account information that you have provided. Because an experienced credit counselor has dealt with these creditors before, they will be able to give you a reasonable idea of what to expect.

Most creditors will be willing to drop your interest rates to the 7-12% annual percentage rate range when you place that account on a debt management plan. While this is certainly beneficial, there may be some creditors who are willing to drop the interest rate on your account as low as 0 to 2%. The creditor may also be willing to drop your interest rate a flat 4%, which is a significant help. Unfortunately, you may also have other accounts whose creditors refuse to give any benefit at all. When placing all your accounts together, you most likely will be able to save enough money in finance charges to make it worthwhile.

There are some creditors that have stricter rules than others. They may be unwilling to lower interest rate unless you place all your accounts on the debt management plan. The credit counselor can advise you if this is the case and help you determine if it is will be worthwhile to you. They may also help you decide if you should leave one card off of the debt management plan to allow for emergencies. Whatever accounts you place on the debt management plan can not be active.

By talking to your credit counselor face-to-face or on the phone, you will find out what benefits you should expect from a debt management plan. The counselor can also help you create a reasonable budget to help you stick to your plan. With the help of this plan, it is reasonable to think that you can get out of debt in under five years.
Ronnica Rothe

About the Author/Author Bio

For more information on how to get lower interest rates with a debt management plan, click here.

Ronnica Rothe is a graduate with honors from the University of Oklahoma and a current student at Southeastern Baptist Theological Seminary. She works with lowcardinterest.com to help individuals get out of debt and reach their financial goals.

Article Source: http://www.articlesphere.com/Article/Getting-Lower-Interest-Rates-with-a-Debt-Management-Plan/94316

Article Submitted: 2007-07-02 | This Article has been viewed 22 times.

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