Should I enroll in a debt management program instead of filing for bankruptcy?
In some cases, debt counseling can work, if you are not already to far gone in the credit game, or if it’s only a matter of excessive late fees, a few missed payments, or minimum payments that are too high to keep up with. However, in some cases, debt counseling is merely delaying the inevitable. No matter what debt management programs say, they cannot erase a bankruptcy record, fix accurate marks on your credit report, or expunge all of your credit card debts. At best, they can get rid of late fees and lower the interest rates and the minimum monthly payments; however, in exchange, they will charge you a fee as well, and the program may allow you to make your payments, but it doesn’t ensure that your debt will be paid down quickly. Still, if your debt is manageable, and you have a steady income, debt management can keep you from having to ruin your credit, and may allow you to pay off your debt in a responsible manner.