Financial wellness can be defined as being secure and free to choose when it comes to your finances.
In a credit crisis, debt is often the number one concern. According to the Federal Reserve Bank of New York, American consumers have a total of $14.3 trillion in debt. In our current uncertain environment, falling behind on debt is a real possibility. Therefore, getting a handle on debt can help move you from credit crisis towards financial wellness.
For instance, a way to tackle debt is through a debt management plan (DMP). A DMP is a structured repayment program managed through an accredited non-profit, requiring no new loans. A DMP can help combat a credit crisis by keeping debt under control. In this post, we’ll look at 3 ways a feasible debt management plan can help boost financial wellness:
1. Reduced Interest Rates
A DMP takes a bigger chunk out of your debt by reducing interest rates. If you’re only making the minimum monthly payment each month on your credit cards, more than 50% of that payment is going to interest. Consequently, paying off cards like this can take years or even decades, depending on how much is owed. A non-profit agency, like Apprisen, works with your creditor(s) to reduce interest rates, fees, & potentially monthly payments. With reduced interest, more of your payment is going towards the actual money that you owe.
2. Hardship Options
In the event that something does change with your financial situation during your DMP, it helps if there are hardship options. For example, Apprisen has a DMP with many custom hardship options. Depending on your unique financial situation, certain creditors may offer enhanced hardship options for your DMP. These options range from temporarily lowering a payment to suspending payments. Selecting one of these options may affect the overall length and conditions of your DMP.
3. Sustainable Payments
In your initial session, a comprehensive financial review with a Financial Services Specialist is completed. This review will look at your income and expenses to make sure that your DMP payment is viable for you and your financial wellness long-term. In addition, the agency works with your creditors to see if a lower monthly payment is possible, to ensure your monthly DMP payment is sustainable.
If you think you might be interested in exploring an Apprisen custom debt management program, you have a few options. You can submit all your financial information using our secure financial health expert tool IRIS. A certified Financial Services Specialist will review your information and get back to you within 24 business hours. Further, you can also call 800-355-2227 for an immediate phone appointment, or to make an appointment for a later date.
In short, a credit crisis can drastically affect all areas of your life. Let Apprisen help get your financial wellness back on track with a feasible debt management plan!