Article Sphere Logo

What is a Specialized Debt Management Program

By Expert Author: Cornie Herring Platinum Expert Author | View Article Summary
Word Count: 515 words | Views: 159 view(s)
Cornie Herring

Normal / traditional debt management program is designed for those people who have debts that are exceeded their repayment capability. Traditional debt management normally works hand-in-hand with credit counseling to help the debtors to resolve their debt issues. But there is another specialized debt management program which dedicated for people who have good credit. If you need to maintain one or more lines of credit for business or personal use, specialized debt management program is your option.

A specialized debt management program works more or less like a traditional debt management program; however, there are some extra steps needed to properly close the accounts and to be included in the debt management plan before a proposal is submitted to the credit grantors in order to help protect the consumer's credit rating.

In the traditional debt management plan, many credit grantors will close your accounts and noted a "closed by creditor" on your credit report which will hurt your credit score and cause you harder to get new credit in the future. But if you are the one who close your account, your credit score won't be affect. This is how specialized debt management program is worked out to ensure that your credit account is closed by yourself and not by the creditors, so that your credit ratings will be protected.

Major differences between traditional and specialized debt management program

Although there are many similarities between traditional and specialized debt management programs, but there are a few major differences between these two debt management programs. Identify their difference will help you to determine which plan is right for you:

1. You do not need to close all exiting lines of credit

Under the traditional debt management program, once you enrolled into the plan, you will need to close all your lines of credit. Whereas, in a specialized debt management program, the plan will help you to decide which credit account you can, or should keep open for emergency or business purpose.

2. Extra steps will be taken to minimize credit damage

Under a specialized debt management program, extra steps are involved to close your accounts before submitting the debt management proposal, so that your credit report will indicate the accounts are closed by you instead of your creditors and get your credit ratings protected.

3. Enroll into specialized debt management plan via the phone

Normally, the traditional debt management plan will require you to attend a face-to-face appointment before you can enroll into the plan. In a specialized debt management program, you can complete your enrollment via the phone.

4. Daily Payment To Creditors

A specialized debt management program requires you to make electronic payment in daily basis to your creditors rather than weekly like what is implemented in traditional debt management plan. With daily payment and the easy of using electronic transaction, it will help to ensure that all payments are made before they are due.

In Summary

Specialized debt management programs are geared towards people that have good credit and needs to maintain one or more lines of credit for business or personal use.
About the Author/Author Bio

Cornie Herring is the Author from http://www.studykiosk.com/CreditBasics/. This is an informational website on credit basics, debt consolidation and bankruptcy. Learn about money from our Money Lessons.

Article Source: http://www.articlesphere.com/Article/What-is-a-Specialized-Debt-Management-Program/70585

Article Submitted: 2007-02-04 | This Article has been viewed 159 times.

Comments on this Article


More "Debt Relief" Related Articles

 
 

Listed below are more articles related to the above article from the "Debt Relief" article category.

People interested in the above article "What is a Specialized Debt Management Program" are also interested in the related articles listed below:

 
So many people are looking for a solution to their seemingly impossible unpaid debt. One solution people use is credit card balance transfers. If you have a big debt on one card, you can open up another and transfer your balance to that one.
Are there such things as personal grants from the government to pay off debts, and if so, how do you get them? Find out the truth about whether you can apply for grants to help you deal with serious debt problems. This article explains the situation in both the US and the UK.
Household debt throughout the United States has become an ever increasing issue. Daily, millions of Americans find themselves in a financial situation that is not easily escapable—but are still searching for a solution. Studies have shown a direct correlation between the state of the economy and the amount of debt consumers hold. The poorer shape the economy is in, the higher debt there is per household, and vice-versa.
If you are experiencing money problems and surfing the net for help with how to get rid of debt, you will find no shortage of ideas, but the vast majority involve making someone else richer at your expense. Any debt problem can be overcome without borrowing money or paying someone else for their services. This article outlines the steps you need to take to tackle any debt crisis on your own.
The national credit card debt problem, enthusiastically cheered on by the credit card companies, has exploded into a completely out of control catastrophe out of their own making. Now, they're suddenly surprised and shocked that many credit card holders have fallen behind in their payments.
Morgan Stanley, Lehman Brothers, AIG, Fannie Mae and Freddie Mac...the question the whole wide world is asking WHEN WILL IT STOP FALLING?Chicken little the sky is falling! The media does not help. They place fear in our minds.
One of the mistakes that many homeowners facing a financial setback often make is failing to prioritize their bills. Even after they fall behind on a few monthly bills or debt payments, instead of abandoning the least important ones, they typically try to keep on top or just a little late with all of them. This can often be a mistake.
 
Article Directory Home All Categories Finance Debt Relief
 

Can't find what you're looking for? Try Google Search!
 
 
Copyright © 2005 - by Larry Lim, Singapore - Article Search Engine Directory at ArticleSphere.com™
All Rights Reserved Worldwide. All Trademarks and Servicemarks are the property of the respective owners.
French Spanish Bulgarian Chinese (Simplified) Chinese (Traditional) Croation Czech Danish Dutch Finnish German Greek Italian Japanese Korean Norwegian Polish Portuguese Romanian Russian Serbian Slovak Swedish Arabic Hebrew Hungarian Thai Turkish English US