A debt management system involves setting up an agreement between the debtor and his creditors. It lays out an arrangement in which the debtor is given permission to pay off debts in small, affordable installments over an agreed-upon period of time.
A credit card debt management program is a nice alternative for anyone who wants to avoid going into bankruptcy or an IVA. The result of entering into such a plan is usually that you end up with lowered payments. Most individuals who are in debt legitimately want to pay off their debts. They are not deadbeats seeking to work the system; they just don’t have the money to pay off the mounting debt that they were forced to take on out of necessity.

Debt management programs allow them to do that by making payments that they can afford. As a result, they can avoid sacrificing the basic essentials of everyday living, and still provide for themselves and their families while paying off what they owe.
Bankruptcy looks like the easy way out when the debt is piling up. Just fill out some forms, go to court and say goodbye to your debt. But it’s not quite that simple. Getting approved for it can be tricky, and it’s no picnic even if you are granted bankruptcy protection. Your credit will be ruined for years to come.

It’s foolish not to at least consider a debt management plan before making a compulsive decision to file for bankruptcy. In the long run, you’re going to find that agreeing to pay off your debt at a reasonable rate is a far superior choice to throwing up your arms and giving up.