With a debt management plan, you make one payment to the credit counseling agency, which distributes the money to your creditors until they are paid in full.
You borrow enough money to pay off all your current debts and owe money to just one lender.
While consolidating debt often sounds like a promising solution, this could make your situation worse.
Consolidating debt usually involves taking out new credit to pay off existing credit.
Writing down all your expenses, even those that seem insignificant, is a helpful way to track your spending patterns, identify necessary expenses, and prioritize the rest.
The goal is to make sure you can make ends meet on the basics: housing, food, health care, insurance, and education.