How To Sort Out Your Debt Problems - Fast!
Debt problems check list
Using a check list to explore each option and find the right which debt management services is the right one for you, may take a little work, but it will pay off in the end. As soon as you found something which works well, there's no need to stop. Carry on going to see if there's anything else which can help you.
You need to bear in mind that some of the following options
will only be appropriate if you have a good credit rating, and your debts are not
too severe.
Sort out your spending
A few of the ways you can save your money, reduce any outgoings are useful if you have problems which are on going...
Make a budget and reduce your outgoings
If you've debt problems which have got bigger over time without you properly managing them, then creating a budget is key. And it's not that hard to do.
By having a handle on your spending, you will be able to put a curb on your spending. One problem with many budgets is they simply will not work. You can easily avoid this, by being realistic with your expectations and goals. Start by making a list of your income and expenses, and see if there are any ways that you can cut your costs.
Do you earn under £72,000?
Check what benefits you can claim. Any family who has an income less than £72,000 could be entitled to some type of state benefits.
Are you eligible for receiving help in paying for your mortgage?
There are a number of state funded debt management services in the shape of Government schemes which are specifically for home owners with a mortgage who may be struggling with their monthly payments. An extra benefit exists where the interest is paid for you. Also a full rescue scheme is available for you where your local council will buy all or some of your home then it will rent it back to you.
Have you taken out a loan and been sold any 'add-on' products?
Many banks, finance companies and lenders have sold other products to complement their loans. If you have taken out a loan, it's important to check if you were mis-sold such a product like, for example, payment protection insurance; over time, this could cost £1,000s. If this is you, check and see if you can get your money back.
Have you reclaimed everything that's owed to you?
For people who are in debt, it's likely some of the money owed consists of charges which may have been unlawfully taken from you. For instance, if you've incurred credit card or bank charges charges for going over your limits, you could well be entitled to get this money back. The same applies to mortgage exit fees.
Have you checked your Council Tax band recently?
It may be possible that you're one of the 400,000 Council Tax payers in the UK who paying more than you actually need to for your home.
What are the alternatives to self help debt solutions?
How do Debt Management Programs work?
Debt management services offer people with debt problems one-on-one help. Those who are in a debt crisis and really struggling with money problems, e.g. failing to meet their repayments, may find that this type of personal help is extremely valuable.
What they can do to help?
The professional advisors who work for debt management programs can use a variety of techniques to help you like:
- Contacting all your creditors and negotiating with them, for example, in order to freeze the interest being applied to your loan or other credit.
- Arranging a debt management plan (DMP) where they can make arrangements with all of your creditors.
- Discuss other potential debt management services like an IVA (Individual Voluntary Arrangement), Debt Relief Order (DRO) or bankruptcy (usually only as a final resort).
- Show you how you can prioritise your most important debt first so you can keep enough income coming in for your family, keeping a roof over your head and bringing food onto the table.
Many people may seem nervous about getting debt help, and (wrongly) think it will be similar to their school days when they were summoned to the headmaster's office when they were naughty. But, there's no need to be afraid of getting help and advice, because debt management services are not there to judge you based on poor financial planning in the past, but help you get back on track for a much brighter future. They're certainly not going to give you a telling you off.
Debt management services main role is to provide the best guidance and help so you can sort out your debt problems. Just by talking to a advisor could help you sleep better at night.
Get debt help today.