In this episode I will discuss about ways to paying off debt. I will also share some additional strategies to manage debt.
A debt management plan sets up a payment schedule for you to repay your debts. By voluntary agreement you deposit funds with your credit counseling agency each month. They send those funds directly to your creditors.
Bankruptcy is a legal status of a person or other entity that cannot repay debts to creditors. Most of the times, bankruptcy is imposed by a court order, often initiated by the debtor.
Consumer proposals are offers made by debtors to modify their payments to creditors. For example, debtors may propose paying a lower amount each month over a longer period of time, or paying a percentage of what they owe.