In a debt management program, you pay the credit counseling services agency an agreed-upon monthly amount, and they disburse those funds to your creditors.
As a nonprofit organization, Clearpoint offers debt management services for a modest fee that is included in your monthly amount.
It’s tempting to pay off all those credit card debts with a new loan, then make just one monthly payment. Most consumers who use bill consolidation or take out debt consolidation loans end up throwing good money after bad.
They usually build an even more towering mountain of debt in just a few years because they didn’t change their spending habits.
Ideally, this new account or loan will have a lower interest rate than the accounts had previously.