(PRWEB) January 12, 2005
At times of severe financial crisis Debt Management Plan (DMP) helps you to manage your funds and also protects you from the humiliation of debt struck conditions. The famous American author Washington Irving in ÂWolfertÂs RoostÂ addressed dollar as Almighty and described it as the great object of Universal devotion. A man who can manage his dollars well can manage his life as well. A Debt Management Plan (DMP) teaches you how to manage your dollars well and lead a prosperous life even during times of financial crisis. Debt Management is a process that allows you to compile your multiple debts into one amount and work out a repayment scheme where you pay the debts in affordable monthly installments. Debt management companies usually negotiate with your creditors to reduce or eliminate high interest charges, delete late fees and other penalties, and update your past due accounts to show current status.
Debt Management Plan has gained immense popularity in the past couple of years with the striking difference they created in gifting hundreds of people a debt free life. In a recent survey it was reported that almost 32% client filed bankruptcy. Additionally almost 10% reported that they are going to file bankruptcy. However, the remaining 58% clients are opting for Debt Management Plans which they find is highly beneficial. The other half who opted for bankruptcy did not prefer to manage their debts and work on a new repayment scheme.
Clients who successfully completed a DMP felt that it provided a wealth of different benefits, both for the present days and the future ahead. Almost 85% of clients felt that the ability to payoff their debt was beneficial and almost 55 % felt that the plan helped stop collection calls. In the long run, almost 32% of the clients felt that the plan helped them balance their budget and almost 41% felt that they learned new budgeting skills. A total of almost 38% felt that they improved their credit worthiness and almost 51% felt that they improved their overall financial status.
With the Christmas festivities happening in the recent past Debt Management Plans seems to be on an upraise. It is reported that millions of Americans ran up billions of dollars in spending on their credit cards in the past month. The issuers of two major credit cards, MasterCard and Visa, reported some record numbers, according to reports published by CNNMONEY.
Reports also cited Visa reporting a 31.8 percent increase in spending when compared to 2003. MasterCard processed a record number of transactions at 914 million, totaling $60 billion, up 12.9 percent from last year. The statistics reflects the confidence and merriment among the consumers. However, the financial analysts at this juncture can smell heavy financial burdens that can cause a wrinkle for people who are not in a position to pay back their debts. With this trend, it is expected that the majority of the population undergoing debts will opt for Debt Management Plan which will show a surge in this program like never before.
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