Most debt management programs are primarily designed for individuals who have accumulated a fair amount of unsecured debt and are now unable to make the required monthly payments. What typically happens to these individuals is that they fall behind on some of their payments, which doubles or triples their minimum payment. Interest charges then accumulate. After falling behind, late charges are added on monthly, thus ever increasing their debt. Due to inadequate funds it becomes impossible to catch up.
Despair sets in.
This is where debt management and the use of credit counselors can help. Debt management companies and credit counselors can help individuals by contacting all of their unsecured creditors and notifying them that the client has enrolled into a debt management program. Creditors must accept that the client has enrolled in our program, but need not grant any leniency in the repayment of the debt. Realizing, however, that the individual is financially over-extended and is seeking professional help, most creditors will work with a debt management company and offer some form of relief. They realize that if they don't help you out a little, you may file bankruptcy and they will likely collect nothing.