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.

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.”

How to create a Debt Management Plan of All time

During hard times, it is understandable on how many can suffer with the weight of increasing debt. However, debt management is possible with ideal planning.  For a surfeit of reasons, most Americans find themselves suddenly under a mountainous debt. This is common when in the middle of worst economic conditions in decades and continuous job losses. Though it is understandable, it is not acceptable and not unmanageable as well. A number of consumers should be able to see it coming early in time as they buy luxurious items. However, in most cases, some who were assiduous in the management of their budget, still end up struggling with growing debt. However, there is still hope. With little effort, that debt can be dealt with.

Constructing a Budget

When managing debt, it is imperative to comprehend that certain debts are absolutely acceptable, while there are debts to be entirely avoided. In most cases, auto loans, mortgages as well as student loans, are acceptable debts to take. However, perky spending and credit card are not good ideas when going for maintenance of financial freedom.

Minimizing Debt

Once a budget has been put in place, one should start the process of getting rid of costly expenditure. It is quite helpful to have debts organized with accordance to the interest rate they attract. The target being to pay down the higher interest debts first. This will probably involve the use of several credit cards. Consult the credit card firms and find out about shifting balances to the cards which attract lower rates. Paying down your debt seems like making a sacrifice, but it is worthy. Dining in is normally enjoyable and healthier as well, compared to eating out. Organize trips to a nearby grocery store instead of the shoe store. The movie theaters are quite too crowded and I doubt if you’ll find them as comfortable as your home. The amount of money saved from not spending on the “luxuries” would make life reasonably more relaxing since it is used to pay down the annoying loan balances we possess.

Beware of the Debt Consolidation Schemes

Regrettably, the debt consolidation firms always clamor for consumers laboring to pay off bills. They keep selling the promise of a single, low monthly payment. Unluckily, it takes ages to have the loan paid down the loan and those involved end up paying more than what they borrowed in the end after the additional charge payments as well as the other fees are introduced.

Live Debt Free

After having your debt behind you, or at least, to a great extent, manageable, make sure that it does not start its growth again. A great idea would be setting up accounts which are automated and have some amount of money deposited directly into the savings as well as the retirement accounts. In case money is not available, then there is no likelihood of spending it. And, to monitor that the amount of money spent does not exceed what you earn, save your credit cards for emergency purposes only.