What is the difference between debt settlement and debt management?

Debt settlement and debt management are two different strategies for dealing with unsecured debt in Nebraska. Debt management is an option for people who have multiple debts, but are able to make regular payments each month to manage their debt. With debt management, a debtor will work with a debt counselor to set up a payment plan that allows them to pay off their debts within a certain time frame. The debt counselor may also be able to negotiate with creditors to lower the interest rate on the debt or reduce the monthly payments. On the other hand, debt settlement is an option for those who are unable to make regular payments or have a large amount of debt. Debt settlement involves negotiating with creditors to accept a lower overall balance for the debt. The creditor agrees to accept a lump sum payment from the debtor to settle the debt in full. It is important to note that debt settlement is not the same as debt consolidation, which involves combining multiple payments into one payment. Both debt settlement and debt management are viable options for people in Nebraska to help them become debt-free. However, it is important to work with a qualified debt counselor and to understand the consequences of each option before taking action.

Related FAQs

Is there a minimum debt amount to qualify for debt settlement?
What documents do I need to provide during a debt settlement process?
What happens if I can’t afford to settle the debt in full?
How will I know if the debt settlement negotiations are successful?
Are there any potential risks if I choose not to settle my debts?
What if I can’t pay the full amount of a debt settlement?
How long does it take to complete a debt settlement?
What should I do if a creditor refuses to delete negative credit items as part of a debt settlement agreement?
How do I know if debt settlement is right for me?
Is there a statute of limitations on debt settlement?

What is the difference between debt settlement and debt management?

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