For our clients who are able to make regular, timely payments, and who are able commit the financial resources necessary to complete the program, debt management may be the best option. Debt management is a program custom-tailored to meet each individual client's needs. The first step in the debt management option is a consultation with one of our debt professionals, during which a complete picture of your financial situation will be gathered for assessment. Eligibility for a debt management plan is decided on a case-by-case basis, but consumers who are qualified will generally have more than $5,000 in unsecured debt, have interest rates on that debt above 12%, and have enough regular income that they are able to commit to a longer-term debt elimination solution. A debt management plan is not a loan. It is a process whereby ADRN negotiates with your creditors to find a way to stop interest and late fees from accumulating. The accounts you have chosen to enroll in debt management are generally closed, meaning you won't be able to keep using them. ADRN negotiates a monthly payment plan amount that is within your means to keep up with, with a definite time period by which all accounts will be paid up.

The debt management option is, in essence, a structured repayment plan with a fixed amount you agree to pay each month. The crucial difference between debt management and debt settlement is that in debt management you typically eventually pay off the entire outstanding balance, whereas in debt settlement you pay only some prior agreed-upon percentage. Debt management will fix your interest rates and reduce your monthly payment, so that you can make payments on time. Creditors have incentive to participate in a debt management program because with every passing month that payments are made on time, their chances of having the entire balance eventually repaid goes up exponentially. Often, arrangements can be made to have automatic withdrawals from your bank account in order to make these payments, thereby reducing the risk of late or missed payment. The typical debt management client is able to find himself debt free in 3 to 5 years, depending on the situation and the amount of debt enrolled. As with debt settlement, most secured loans, such as mortgages or car loans, are not eligible for enrollment. It is important to note that accounts which are in collections for longer than 60 days, often do not qualify for debt management, and for such accounts debt settlement or bankruptcy may be the better option. Below are a few important points to know about debt management with ADRN

• Debt management is not a loan; it is a structured debt repayment program whereby the full balance on enrolled accounts is eventually paid off, but at monthly payments and interest rates that are more manageable to you.
• Enrollment in a debt management program carries with it the obligation to make agreed-upon monthly payments on time. If you should fail to make one or more payments, you may be removed from the plan. Direct withdrawal from a checking account is often a good way to ensure payments are made in full and on time.
• There will be a monthly administration fee for your program, which will vary by the amount of debt enrolled.
• Certain creditors, such as Wachovia or Advanta, elect not to participate in debt management plans.
• Enrollment in a debt management program will generally have a minor adverse effect on your credit score. Your credit report will usually reflect that an account has been enrolled in debt management, but since these accounts are eventually paid off in full, the negative effect is usually minimal.