Consumer Comeback Blog

Credit Score Glossary: Debt Management

Debt Management: A plan to help consumers decrease and/or their eliminate debt.

Debt management plans – which work best with unsecured debt such as credit cards and personal loans – can be created by consumers themselves by prioritizing necessary expenses and sticking to a budget. However, some may find it more beneficial to work with a credit counseling agency to create a debt management plan. This option may require the consumer pay a fee for the agency’s services, but the debt management company can negotiate with lenders to possibly reduce monthly payments.