Debt Management, defined simply, is a process by which debt is eased and eventually reduced through the managing of consumer assets and direct negotiation with creditors. A debt management program or DMP is referred to as a financial arrangement where a credit counselor helps you to lower APR rates and consequently reduced monthly payments. Therefore reducing the number of years it would normally take to get a consumer out of debt.
Debt Settlement:
Debt settlement is known by many names such as debt negotiation or debt elimination, yet all of these names are referring to the same thing. Debt settlement is usually something that has to be considered by those that have not been able to stick to a debt management plan or cannot afford the monthly payments associated with a debt consolidation plan. While this is not a situation that you want to encounter, when you choose debt settlement you may be able to pay just 50% of the total amount that you owe to your creditors.
