Debt management is a service provided by the financial market, which handle and manages debts. It is basically availed when an individual is burdened with numerous debts, and finds difficulty in managing and repaying them.

Today debt problem is going common these days, so in order to serve all most of the lenders and financial institutions provides debt management. Debt management is a wide term used to handle debts. It also includes various other services which forms the part of debt management. They are:

• Counseling sessions

• Negotiation with the creditors

• Budgeting

• Guiding etc.

The financial institutions providing debt management, has a panel of financial and credit expert’s who listens to the problem of an individual. It is usually done in counseling sessions provided by them. After listening to the problem they suggest the best possible solution to an individual in order to overcome debt problem. The lender of debt management also helps an individual in repaying their debt as they negotiate with the creditors on behalf of an individual availing debt management. In this way his amount of debt gets reduced but such reduction lies in the interest rate or penalties of the loan but not in the principle amount.

As per the study there are different modes to manage debts that are, through loan, mortgage or remortgage. It is true that there are different three modes of debt management but end result of all three is same that is, managing debts.

In order to avail debt management, an individual will be required to furnish certain personal and financial details. Such as:

• Identity proof

• Address proof

• Nature of debt problem

• Employment details

• Income earned

• Structure of common expenses etc.

Generally, by evaluating these points the credit advisor suggests the way to come out of the debt problem.

Usually, there are also other options available, which will make an individual debt free such as bankruptcy etc. But, they are considered as bad credit so it puts a bad impact on the credit report of an individual. Thus, these modes are not recommended. On the other hand, availing debt management helps in improving the credit score as all the debts are repaid.

Today, debt management can be availed through online mode also. Online method of availing debt management helps in saving time, money and efforts.

And, once an individual get rid off the debts, then he must always make an effort to avoid such debt situation which is only possible by proper planning and budgeting.