Debt Management
Debt management is the process of developing a plan to reduce your debts, increase your credit rating and generally exercise more control over your finances. You may decide to take out a debt consolidation loan, or commission a company to manage your debt by paying them a single monthly fee and let them deal with how much goes to who on what day.
Debt management should also include detailed analysis of which debts are critical and which ones are easily dealt with, since if you are in arrears with a creditor then this will show on your credit record and must be avoided, whereas a history of keeping up payments over a period of time will count in your favour. You may wish to take out a debt management loan to pay of the critical debts, and continue establishing your credit worthiness with the ones that give you no trouble.
Another type of debt management might be to negotiate a reduced rate on the majority of your debts (paying them the minimum they will possibly agree to), and pick one or two that you want to get rid of quickly (paying as much as you can to these creditors to settle up ASAP). This maintains a good sequence in your credit record of obligations being met.
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