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Every coin has two sides. Similarly debt management plans have no exception. The main advantages of debt management plans are: They aim to reduce multiple loans into a consolidate loan which ensure a single monthly payment, hence have a control over ones finance. If the creditor is considerate, there can be some reduction in the interest charged on the amount owed and some flexibility in the installment to be paid which helps to release the stress during crisis situation. A wise creditor will always negotiate to an affordable monthly installment for the interest of both parties.

The disadvantages of debt management plans are: Though the monthly payment may be affordable but will extend to a longer duration and you end up paying more in totality. If not planned properly interest rate on the arrears will be higher than the original loan rate. If the correct debt management plans are not adopted, one might land up in a position where it becomes difficult to free oneself from debt at any point of time. The agreement with the creditor has to b formal or else there are chances where he can change his mind anytime. To know more about the debt management plans please do search net.