How To Easily Manage Your Debt
To effectively manage your debt, you'll need to assess what
your financial situation is, and find the most suitable solution for
your particular circumstances. Getting the right debt management advice
is advisable. Although there are many 'free' debt management companies
and charities online, very few are actually offering free advice at the
point of entry. it's important to find the right company who can give
you free, impartial advice you're when in financial difficulty.
First steps to debt recovery
In essence, your first priority should be two fine and effective debt solution allowing you to have enough money to pay for your bills, living expenses, and at the same time solving your current debt problem. In certain cases, a DMP or debt management plan may be suitable. Using a DMP, you can have your monthly payments reduced to an affordable level, giving you enough money remaining for your living expenses.
If a DMP suits your circumstances, your creditors will be dealt with, and you'll be on your way to getting debt free. If you read on, you can find out about debt management plans, but the processes, how they may help in your particular circumstances, and what you need to do to apply.
The basics of debt plans
A debt management plan is essentially an informal arrangement directly with your creditors allowing you to make reduced payments so that you can be helped through any times of financial difficulty.
You may be able to organise a plan yourself after receiving the right debt management advice, or request the help of a third party who can act as an intermediary (on your behalf) between your creditors and you.
Free debt management advice
There are some companies that do offer free debt management advice. Just make sure all your payments go towards reducing your debts and do not add to your expenses (by not using profit-making organisations charging a fee), so your debt is paid off quicker.
Using a registered debt charity or a trusted debt management company means that creditors are more likely to accept a debt management plan organised by them. In many cases, creditors may well reduce or even freeze their interest rates or any other charges on your debt (remember that not all lenders will consider this and there is no legal obligation for them to do so).
Who are debt management plans for?
A debt management plan is not right for everyone. For a DMP to be suitable, you need to have sufficient money left over after you've paid all your essential bills and living costs in order to make monthly debt repayments.
A different type of debt management plan
It may be that having a structured debt management plan could be the best solution for your particular situation. In this case, we'll arrange your DMP as part of our debt management service and help you every step of the way. This kind of DMP works well especially if you are already having problems with either managing your money or keeping up with your agreed repayments to all of your creditors.
How does debt management work?
- We'll take a close look at all your finances by making an assessment of your income and expenses, then help you draw up a budget. If you've any money left over after all your monthly living expenses have been paid for, then this can be divided between all your creditors in monthly repayments.
- The debt management company (the third party involved) will deal with all your creditors on your behalf. All your creditors will be written to in order to arrange an affordable monthly repayment for your debt.
- When your plan has been agreed, you just need to pay the monthly total via Direct Debit. This money is then divided between all of your creditors. If you're using a debt management company who charges a fee, this fee is usually deducted from the surplus of your monthly budget.
- A monthly statement will be sent out to you showing exactly how much of each of your debts has been paid off, and online access can be provided allowing easy management of your plan and your statement can be viewed 24/7. Further debt management advice can be easily obtained through the contact form.
Is it right for you?
If after reading the above debt management advice you think a debt management plan could be suitable in your circumstances, just contact us. We'll quickly assess your finances and find the most suitable debt solution in your situation.
You may be (quite rightly) concerned about your current debt levels, so we'll take a good look at your financial situation in full and if appropriate, offer a debt management plan which allows all your debts to be paid off in the most affordable way.
Our first priority is making sure you can care of your most important living expenses whilst at the same time you can pay off your debt.
If you think a DMP is right for you, we'll carry out a comprehensive review of your current credit and debt situation immediately and advise you on the best solution.