I have a friend who called me in tears over her aunt/uncle having to foreclose on their house. Both the aunt/uncle were layed off from their jobs and they continued to live life freely, without realizing the impact of what their spending was doing. Before when both of them had good jobs, they were readily able to spend money on whatever they wanted. They had the nicest cars..The biggest homes… The most expensive shoes. However, their spending ways did not decrease when they both lost their jobs a little over 7 months ago. As a result, they went into big debt that could not simply be resolved.
The bank ended up taking their house and they were stuck without anything. I know it is not their fault for losing their jobs, but I do blame their spending ways, and my girlfriend agrees! They ended up at rock bottom with severe debt! They were trying every which way to try to get out their debt but nothing was working.
After some research and talk with their friends, they came to find out about debt management plans. I had not heard about what these plans are so I was intrigued as well. A debt management plan, or DMP, is an informal arrangement with your creditors to repay your debts in a full at a lower rate. Doesn’t this sound great for those in debt?
The way it works is they will remove debts at a rate that you can afford. Even if you hit rock bottom, they will work with you to try to resolve your debt. DMP will help to remove the stress by dealing with your creditors. For my friend’s aunt/uncle, they had such severe stress over going into debt that it was making them physically ill. When they found about this plan, they immediately jumped on board and began to actually sleep at night again. The best part is some of the plans do not charge fees. So if you don’t have any money, no need to worry!
I know my friend is not the only one who had a family member who dealt with money issues. In today’s economy, debt is all around us. While we should all take necessary precautions to make sure we don’t fall into debt, please know that there are places that will help.
*This is a partnered post.