What is Debt Management?

IamDozzy

Well-known member
This is a concept that a lot of small scale business owners might not be use to but its knowledge is an absolute necessity especially if the business is to be expanded. Debt management is an agreement (official or unofficial) between the person or organization owning and the person or organization being owed in which details of payments of outstanding debts are agreed and modalities for payments are worked out. Debt management helps big organizations and even governments reduce the risk of being exposed to high interest rates.

There are a different types of debt management strategies and they include;
• Contol cash flow
• Debt consolidation
• Debt recycling
• Prepay interest
 

Godslamp

Well-known member
Debt management refers to an unofficial agreement with unsecured creditors for repayment of debts over a specific time period, generally extending the amount of time over which the debt will be paid back. Under debt management, the creditors are offered a Statement of Affairs. Through this, your disposable income, as estimated by the debt management company, will be proffered to the creditors and they will decide on whether to agree to it or not.
 

Syldan

Member
Debt management is a way to get your debt under control through financial planning and budgeting. The goal of a debt management plan is to use these strategies to help you lower your current debt and move toward eliminating it completely.
 
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