What is the difference between debt settlement and debt management?

Debt settlement and debt management are two different ways of dealing with debt. Debt settlement involves negotiating with creditors for a reduction in the principal amount owed. This can be done by working directly with the creditor, or by using a third-party debt settlement company. The goal of debt settlement is to reduce the amount owed so that it can be paid off over a shorter timeframe. Debt management, on the other hand, does not involve reducing the debt amount. Instead, debt management focuses on helping the borrower create and follow a plan to pay off the debt. A debt management plan is created through a credit counseling agency and involves developing a budget and paying off the debt in a designated period of time. This is usually done by making one monthly payment to the credit counseling agency which then distributes the payment among the creditors. In North Dakota, both debt settlement and debt management are regulated by The North Dakota Department of Financial Institutions. It is important to be aware of the law in order to ensure that any debt settlement or debt management plan is created in compliance with state laws.

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What is the difference between debt settlement and debt management?

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