Which of the following best describes the purpose of fees in debt management?

The purpose of fees in debt management primarily focuses on covering the additional handling costs that arise when debts are overdue. When a debtor does not make payments on time, the creditor often incurs extra administrative costs, which can include additional processing, follow-up communications, or collection efforts. By charging fees for overdue debts, the system ensures that those extra costs are accounted for and passed on to the debtor, encouraging timely repayment. This practice helps maintain the financial health of the management system by offsetting the burden of these incurred costs, thus allowing for more efficient operations and support for those who do remain compliant with their payment obligations.