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Debt Management
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by: stickystebee
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Have loans and credit cards and overdrafts that you battle to pay because your financial state has changed? The only solution left now is to do some debt management? Choosing a solution to manage your debts is by far not an easy choice to make. So many companies promises to relieve your debt by sending them money, but the question is always; “How trustworthy can they be?” How can you be sure that they can follow through on the things they promise? My first advice would be to see if you can not do it by yourself. There are numerous online websites with information that can help you through the process quite easily. Let me give you some tips and explain to you some easy ways to do it yourself. First and foremost, make a full assessment of your financial situation. In other words, what are your regular incomes, who do you, owe what amount (your creditors) and any other relevant information. By doing this you would be able to clearly see how much you can realistically afford to offer each to of your creditors. The next step would be to approach your creditors and ask them to accept some reduced payments. If your plan is realistic and sustainable then most creditors will be happy to conform to the new payments. Thereafter it is up to you to sustain these newly arranged payments until all debts are cleared or until your income increased and you wish to make new arrangements with higher payments in order to finish your debts sooner.
If this sounds like something you’d rather let professionals handle, then shop around. Once again there are numerous places to go to. Online you’d find a lot of advice and even ones that offer their services for free. The advantage to you would be that you will have only one payment to make on a monthly basis. These debt managers will then take your one payment, divide it between your creditors every month and they will be making arrangements with the individual creditors themselves. Free debt management Criteria A number of criteria need to be met before this service is offered free: 1. You absolutely cannot meet your current contracted credit repayments. 2. You can easily afford to pay your unsecured creditors at least $150 a month. 3. Your unsecured non-priority consumer debts total at least $10,000. Hire Purchase, leases and secured loans cannot be included by the very nature of being secured. Priority debts, such as rent and Council Tax arrears and Student Loan Company payments are also not included. Likewise money owed for Benefit or Tax Credit overpayment are excluded, as are CSA and Maintenance arrears. If you have car finance, you should check if the loan is secured on the car. A lot of car loans are, and as such cannot be included in a debt management plan. 4. You have a minimum of 3 different consumer debt creditors. For example, if you had an overdraft with Bank of America, a Bank of America credit card and a Bank of America loan, which would count as one creditor. Please note: Creditors might not want to allow the inclusion of unsecured facilities where you have made less than three payments.
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Free debt management Criteria A number of criteria need to be met before this service is offered free: 1. You absolutely cannot meet your current contracted credit repayments. 2. You can easily afford to pay your unsecured creditors at least $150 a month. 3. Your unsecured non-priority consumer debts total at least $10,000. Hire Purchase, leases and secured loans cannot be included by the very nature of being secured. Priority debts, such as rent and Council Tax arrears and Student Loan Company payments are also not included.
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