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.