The Consumer’s Guide to Escaping a Life of Debt

Debt Help Specialist

Debt Help Specialist

The modern world makes it relatively easy for hard-working people to quickly become embroiled in a never-ending cycle of debt and reliance on credit. Consumer credit is everywhere we turn, and although lending restrictions have tightened slightly in recent years, it is still far too easy to obtain inappropriate levels of debt. Thankfully, a specialist debt counsellor can now work with consumers in order to formulate a manageable repayment plan. Getting out of debt for good often requires help from people who know the law, and it involves a number of decisive actions taken on behalf of the consumer.

Formulating a Statement of Affairs

One of the first things a debt help specialist will do is to create a statement of affairs. This will involve recording all of a client’s income and outgoings. Such a statement will include everything from food to energy bills, and it is designed to provide an accurate reflection of a consumer’s financial position to creditors. At the end of this process, an accurate reflection of a consumer’s disposable income can be established; it is this figure that will be used to dictate how much each creditor will receive every month.

Implementing a Manageable Schedule of Repayment

The last thing a debt management plan should do is put more pressure on the debtor. That is why specialists can work with creditors to come to arrangements which are sustainable and acceptable to both parties. While there is no guarantee a creditor will accept a particular repayment schedule, specialists will know exactly what they are likely to accept. Coming to an agreement with creditors with such a schedule will stop any impending insolvency action, and that could allow people to rebuild their lives.

Continuous Help and Guidance

In a perfect world, all repayment plans would be completed; on time, and in full. However, as we don’t live in a perfect world, debt help specialists are there to support their clients and act on their behalf. Sadly, the threat of unemployment hangs of the heads of many people these days, and that can often mean that a person’s income can change with little notice. Having a trusted debt advisor to rely on for help and advice could mean the difference between facing insolvency and gaining a temporary repayment schedule until an income has been restored. Indeed, it is often the case that consumers repay their debts in full far quicker than an agreed schedule dictates. In these circumstances, a debt advisor could negotiate favourable early repayment discounts on a debt.

The spectre of debt looms large in the lives of millions of hard-working people in Britain. The recent economic problems have led to a sudden increase in loans from short-term loan providers, and the huge cost of such loans has left many people facing severe debt problems. Enlisting the help of a debt specialist is not a guarantee of a debt-free life, but in many cases it will lighten the burden of debt considerably.

Company Profile

1st Point Debt Solutions offers debt management solutions to help you resolve your debt problems.  If you require help on your payday loan debt, please visit – http://www.1stpointdebtsolutions.co.uk

Don’t Hide Your Debts under the Door Mat

Getting the right debt advice can sometimes be a struggle especially as there are a lot of companies out there who are more interested in getting money off you rather than actually helping your situation. Throughout the UK there are a lot of people who are in debt trouble but on the surface it can easily be covered up and they can manage their normal day-to-day lives. The problem is that they are paying too much interest on their loans that they have and there is a smarter way of dealing with this problem rather than ignoring it and simply paying what you can when you can.

debt management plan

Debt Advice

What most people do not understand is that by using an experienced debt management company you will be able to get the best advice and reduce your debts even before you have started paying them off.

The worst thing you can do is pay all of your debts individually as you will be charged extortionate amounts of interest especially if you have credit cards. Also the likelihood of you missing payments and being charged a late payment fee is very high therefore increasing your debt and your next payment. This then becomes a vicious circle if an individual does not act fast and use a debt management plan. This will help put all of your payments into one manageable monthly fee and you will not have to juggle a lot of paperwork and spend time making small payments to different companies.

A plan will help you start afresh and know that your debts are being paid off and are manageable. Also this may stop the frequent calling asking you to make more payments as a lot of credit card companies can be very aggressive in the way that they recover money.

What else is important is if you are making your monthly payments and paying off your debts then you will not risk any bailiffs coming round to recover the money through taking your possessions. This is what really puts a lot of people who are in debt in fear because the personal intrusion into their home and having their furniture and belongings put under scrutiny can be extremely stressful especially if you have a family.

For those who are seriously in debt and this means owing a sum of £10,000 or more then you may want to consider an IVA. This is not a consolidation loan but where government legislation comes into force and a percentage of up to 50% to 60% of your debt could be written off straightaway. Then monthly payments are put in place and the aim is to have you debt free within five years.

This scheme has allowed many people to keep their homes and also it has prevented them from bankruptcy. It is also important that you take up this arrangement with a reputable company that will help you throughout the process. There should be no upfront fees for the application process and only a management fee placed on your monthly payment.

These are just a few tips on how to manage your debt but most importantly you should not brush them under the doormat and forget about it as the problem will only get worse.

The best way to have debt cleared

Debts Clearance

Debts Clearance

Find out the most effective ways of clearing debt and choose the best way. Begin clearing debts today. In case you are looking for a good way to clear debt, relax, someone’s with you. A Report from Federal Reserve G.19 about consumer credit in the US showed that in the money owed on store and credit cards, also recognized as revolving debt, amounted to $15,788 in May 2010. Clearing debt is not using, is more so in case you are from a family with too much debt to continue with life comfortably.

In case you are situation cannot allow you to pay down debts, you can minimize the bloody through  debt relief program, for instance a debt settlement program, debt management plan or option for bankruptcy. Clearing debt is much easier since there are ways to help you quickly clear the debts affordably. Each solution to get has its advantages and therefore it is necessary to contemplate on the advantages and disadvantages of each, before opting for an agreement.

In case you are not employed in the debt of money to pay your creditors, the best way to have your credit card and loans cleared can be via bankruptcy. This can clear all of debts which are unsecured and not make any more payments to creditors. After petitioning the court, it is against the law to be contacted regarding your debts. Clearing unsecured debts takes only four months.

The bankruptcy laws in the US were changed in 2005, through the bankruptcy abuse prevention and consumer protection act. During the 12 months which ended on 1st March 2010, a sum of 1,057,686 people, filed under the bankruptcy law. You will now need to protest against the court via demonstrations that your income does not meet the median level required for your state and that you have not nonexempt assets, for example, luxury sports car or a second home, to be repossessed.

Although this might not be the quickest way of debts clearance, debt management plan is an effective method of managing small amount of money owed to various creditors. An individual calls the debt collection agencies to gain a level of contribution out of the disposable income you get.