Eradicating your debts on your own terms – Taking your own financial responsibilities

Eradicating debts on your own

Credit Card Management & Consultant

Getting out of your high interest unsecured debt and staying out of debt is not an easy task. Chances are high that if you’ve misused your personal finances and your credit cards, you must have amassed a huge amount of credit card debt. Whipping your plastics during every little purchase is not the way to go if you want to remain financially fit throughout the year. But as most Americans are not much concerned about their finances, they commit the same mistake time and again. It is easy to get out of debt by seeking help of professional debt relief companies and by taking your own financial responsibilities. Have a look at some do-it-yourself steps to get back a firm grip on your finances.

  • Stop increasing your credit card debt: You must be aware that credit cards may seem to be attractive options to fulfil your dreams when you’re running short of money. Credit cards are the actual reason for the entire debt burden throughout America and therefore you have to make sure that you use cash instead of credit while buying things. The more you use your credit cards, the more you will drown yourself in a sea of debt. Lock your cards and carry cash with you.

 

  • Keep a track on your expenses: The idea of writing down what you spend is a concept that may sound baseless to most people but this is a worthy concept of dealing with your debts. Write down on pen and paper the amount of dollars you earn in a particular month and the amount that you spend from it. Avoid more debt by staying within your spending limit and by following a frugal budget. Try to distinguish between needs and wants and concentrate only on the wants.
  • Negotiate with your creditors: You can negotiate with your creditors on your own instead of getting help from professional debt help companies. If you feel that the professional companies can only help the debtors pay off their debts, you’re grossly mistaken. You can also negotiate with your creditors on your own and tell them about your personal financial hardship.

 

  • Start making the monthly payments: As soon as you negotiate with your creditors, they will ask you to make a single monthly payment to them. Make sure you manage your personal finances so that you don’t fall back on the monthly payments and hurt your credit score. If you make the monthly payments on time, you can get out of debt sooner and become debt free.

Thus, if you want to delete your financial worries, you must make sure you follow the tips mentioned above. It is always better to manage your finances on your own than rush to professional companies for help.

Affordably pay down your debt for debt solution in UK

Debt relief program as an alternative to bankruptcy to consumer

A debt relief program, debt management plan and Individual Voluntary Agreement on bankruptcy alternatives. Quickly pay down your debt through a UK debts solution.

Debts Solution

Debts Solution

An increasing number of consumers are direly seeking an option of evading the debt in the UK. Price Waterhouse Coopers illustrated there were 120,000 personal insolvencies in 2009 were because of severe debt problems. A UK debt solution could give a good alternative to bankruptcy.

Are the debt free solutions necessary?

The Bank of England gave a report that the credit card debt written off by the banks increased from £812m to £1.6b within just the 3rd quarter of 2009. This implies that the consumer is not forgiven. A debt relief program aides consumers who are struggling to meet a substantial agreement with creditors to pay down debt.

Paying down debt using a UK debts solution.

The aim of debt relief program is to reschedule the repayment and make it more affordable, minimize debt, quickly paying down debt and prevent additional credit contact. Though some of the consumer debt relief programs are merely voluntary in nature, some are legally binding. Bankruptcy will have negative implications to the individuals credit-rating and make taking loans from lenders more difficult for a period of up to six years.

Individual voluntary arrangement. [IVA]

This is the major alternative to bankruptcy and involves paying down debt more than five years. 75% of the creditors (in value) must approve it at a creditors’ meeting. It is legally binding with creditors to repay a lower percentage of the amount owed. Additional charges and interests are frozen. An IVA makes the homeowner remortgage at the end of year four supposed contribute some money to the deal. After completing repayment an Bankruptcy practitioner issues a certificate of completion.

Paying down debt with a debt management plan

The aim of this solution is to present affordability to the consumer. It analyzes the budget, a monthly repayment which is affordable is determined. The client then makes one repayment each month to a mediator who will disseminate the money to creditors. The charges and interest may be frozen; there is no legal obligation for the lender to do so. This plan is an entirely voluntary and between the debtor and his creditors.

Debt relief order.

For those who own less than £15,000, this is a debt relief program for them. To qualify as well, you should have assets less than £300 and a disposable income, which does not exceed £50 a month. This is a form of bankruptcy that allows one to be free of debt in just 12 months. Its costs are £100.

Sources: “Debt statistics-February 2010.”