Why Debt Management Services Are Beneficial For Your Company

  • If your company is looking to reduce its accrued debt payments and rising interest payments, it should look no further than debt management services. Debt Management Services enables your company to reduce its monthly payments. Enumerated below are the reasons detailing how a debt management service is advantageous for you and your company:  (Information source: https://www.accountability.co.za/)

    1. It reduces your interest rates: The Debt Management Service has proficient and specialized employees which negotiate on your or your company’s behalf to reduce the accrued interest rates on your previous bills/debts through a comprehensive and thorough discussion. Furthermore, your creditors will accordingly restructure the existing payment structure reflecting the discussion to better manage your pending debt.

    2. Debt repayment plan: After negotiating on your behalf with the creditors, the debt management service will ensure that you receive an updated debt repayment plan from your collection agencies. This new plan will reflect reduced rates of interest which will, in turn, decrease your monthly bill payments so that this enables you to clear your principal debt sum along with some applicable interest rates. This plan is comprehensive in nature and is developed after several rounds of deliberation between the creditors and your debt management service. Moreover, this plan takes into account your current financial standing and helps in organizing your finances far simpler.

    3. A simple monthly payment of your debts: The debt management agency after its negotiation will ensure that you pay a single and monthly payment towards clearing your accrued debts and bills to the creditors and the respective collection agencies. The debt management agency will disburse and divide the amount vis-à-vis its respective dynamics and disburse it to the individual creditors without you or your company having to be directly involved. This process ensures a seamless transaction of funds as well as convenience for both the parties concerned.

    4. Removes the late payment of fees: When an individual or a company defaults on its debt account – a specified sum i.e. a charge, penalty or an increased interest rate will be levied. This charge can be reduced or even altogether removed after negotiation by the debt management agency.

    5. Improves your credit standing: Late payments of accrued debt and defaults on the same have needless to say an overall negative impact on your credit score. However, once you hire a debt management agency – they start clearing the debt accounts and your credit score gradually improves. When all the debt is paid off, the agency negotiations on your behalf and gets the concerned accounts in your favour.

    6. It provides free debt counselling: Many debt management agencies provide pro bono counselling to its clients. This counselling session enables you to rigorously and comprehensively analyse your current financial situation and discuss the best possible options with a proficient and experienced consultant. Furthermore, the said consultant will advise you on which is the best possible option for you or your company while moving forward with the payments.

    In conclusion, it can be said that the debt management service is a vital element of all those individuals or companies intending to clear off their debts.