Welcome to the Learn Now or Pay Later financial wellness series, brought to you by Cambridge Credit Counseling. We're hoping to provide you with a better understanding of the financial challenges that confront you each day. Through education and advice, you can build a strong financial future Cambridge can help. Donnie Moorhouse with Chris Viale, we're talking about a debt management plan. Now, this is not bankruptcy is it? No absolutely not, it's the exact opposite. Bankruptcy or not paying your bills is not what a debt management plans all about. You're making good of your debt, you're paying everyone back, but there are certain circumstances where consumer needs a break and when you go to a legitimate credit counseling company and you go through an assessment.

If they determine that you need some help getting your debts paid down, the credit card companies are willing to help you out and they'll reduce your rates. They'll set up monthly payments that are lower; they'll wave late fees and over-the-limit fees on a going-forward basis. They'll set up so you can make good of your debt within a four to five-year timeframe and live debt-free going forward from there.

So the banks, the credit card companies, they'll view me having a debt management plan is a positive thing? Without a doubt if the circumstances are appropriate for you and there's no way you can pay your debt down on your own because of financial setbacks or whatever it might be, these plans have been set up to help give consumers the break they need to avoid bankruptcy, to avoid defaulting on their bills, to make good their debt, feel good financially about it and then in the future have no ill effect and be able to do whatever they want financially down the road. Very good, thank you Chris, thank you for watching.

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