Credit card debt is the third largest source of indebtedness in the US: Credit card debt management is the solution br According to the reports of the financial analysts, credit card debt is reportedly been the third largest source of household indebtedness only after the $14 trillion in the mortgage debt market and $1 trillion in the student loan debt market. Studies reveal that the average household owes a huge amount on credit cards but the average debt is gradually falling in the first quarter of 2012. Since the same time in 2010, the amount is down nearly by $2000. Does this show that the Americans are repaying their credit card debts? Or are they just walking away from their debt? Though there are so many professional debt relief options that you can take resort to when you fall in debt, most of them are choosing the debt management plan as it tends to help a person pay back debt and also boost his credit score at the same time. br What is debt management and how is this helping the economy? br With the rising debt burden in the US, an increasingly large number of people are trying to put an end to their debt worries by getting help from the professional options. If you too are waiting to be one among them, you may get help of the debt management firms. Here are the benefits that you may reap when you take help of the debt management firms. br br The credit counselor assesses your finances: The credit counselor will initially assess your personal finances so that you don’t have to oscillate between getting professional help and helping yourself. He will look into your present financial state; calculate the total amount of debt that you owe and the total income that you earn in a month. He will check in order to know whether or not you can repay your debts on your own. br The counselor will help you with a budget: He will craft a frugal budget for you so that you can follow it throughout the month. Maintain a balance between your income and expenses so that your income is always more than your expenses. He will also teach you personal finance management techniques through which you can rein in your finances. br The counselor will enroll you in a DMP: When the counselor sees that you can’t repay your debts on your own, he will enroll you in a DMP through which you can repay your debts in easy and affordable monthly payments. The counselor will negotiate with your creditors in order to alter the repayment plan too. br The interest rates will be reduced: The interest rates on the credit cards are the biggest reason for the large number of defaults. When the credit counselor negotiates with your creditors, you can reap the benefits of lower interest rates and extended repayment term. You just have to make a single monthly payment to the credit counseling agency and this way you can repay your credit card debt. br So, when the household debt is gradually falling in the Q1 of 2012, you too should contribute to this by taking care of your personal finances.