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Della Morales 23-02-09 00:44 view355 Comment0

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Debt Management Vs. Debt Consolidation: What Is Better?

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The Debt Management Process vs. Consolidation of Debt: Which is better?
The debt management process and the consolidation are two options for debt relief. Which is best for you depends on your personal circumstances.
By Sean Pyles Senior Writer | Personal finances and financial debt Sean Pyles leads podcasting at NerdWallet as the producer and host of the NerdWallet's "Smart Money" podcast. The show "Smart Money" Sean talks with Nerds from the NerdWallet Content team to answer the questions of listeners about their personal finances. With a particular focus on sensible and practical advice on money, Sean provides real-world guidance that can help consumers better the financial situation of their lives. Beyond answering listeners' money questions on "Smart Money" Sean also interviews guests outside of NerdWallet and also creates special segments that explore subjects such as the racial gap in wealth as well as how to get started investing, and the history for student loans.
Before Sean lead podcasting for NerdWallet, he covered topics related to consumer debt. His writing has been featured in USA Today, The New York Times as well as other publications. When Sean isn't writing about personal finance, Sean can be found digging around the garden, taking runs and taking his dog for long walks. He lives in Ocean Shores, Washington.





5 Aug 2021


Edited by Kathy Hinson Lead Assigning Editor Personal financial, credit scoring, debt and money management Kathy Hinson leads the core personal finance team at NerdWallet. Prior to joining NerdWallet, she worked for 18 years working at The Oregonian in Portland in positions such as copy desk chief and team director of design and editing. Her previous experience includes news and copy editing for several Southern California newspapers, including the Los Angeles Times. She earned a bachelor's degree in mass communications and journalism from the University of Iowa.







The majority or all of the products featured here are provided by our partners, who pay us. This influences which products we feature and the location and manner in which the product is featured on a page. But, it doesn't affect our opinions. Our opinions are entirely our own. Here is a list of and .



Debt management and debt consolidation can both combine several balances into one with a lower interest rate. This will help you pay off debts faster and help you save money.
The method that is best for you is based on the type and amount of debt you've got.
It's time to cut your debt
Join the link to sign up and keep track of everything from credit cards to mortgages in one place.






Debt management
The process of combining multiple credit card debts in one with a single monthly payment and a slashed interest rates.
The repayment plan typically lasts 3 to 5 years and generally, you can't create new credit lines or use credit cards during that time. The plans focus on credit card debt, not student loans medical bills, personal loans.
The reason you'd decide to go with it:
The majority of your credit card debt
You have more debt than you could reasonably consolidate
Your credit score won't be able to get you to get the debt consolidation products you want, such as the balance transfer credit card or a
You want to be disciplined externally by the program imposes to stop you from adding to your balances

Seek out a to get started with a debt management plan. Many agencies provide plans online or over the phone.
Consolidation of debt
The combination of several debts creates one single debt, ideally with a lower interest. There are many ways to do it, including the personal loan, balance-transfer credit card 401(k) loan or home-equity loan.
You'll need good or excellent credit to qualify for most affordable interest rates on personal loan or balance-transfer credit card.
Why you should decide to go with it:
You could qualify for an interest rate that is lower than what you're currently paying, which will save you money and assist you in eliminating the debt faster.
You want to cut the number of payments you're juggling
You can maintain access to credit while paying down debt




Author bios: Sean Pyles is the director of production and host of the NerdWallet's Smart Money podcast. His work has appeared in The New York Times, USA Today and elsewhere.







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