Tuesday, 14 July 2009

Face up to your debt problems and seek free professional advice

posted by debts.org at 05:12

Instead of burying your head in the sand, there are now more specialist debt solution companies than ever in the UK, giving free advice, to help you get out of debt.You may be able to help yourself by reading the following top ten debt solution tips:

Face up to your debt problems

Make contact with your lender as soon as possible, and preferably before you miss your first payment. Explain your situation to them and don´t be afraid to make them an offer of payment if you can´t afford the full amount. You may be able to arrange an acceptable payment plan or even freeze your repayments until you are in a better position financially. Lenders and courts will always be more sympathetic if you acknowledge creditor´ letters, obey court summons and show that you are willing to pay what you can afford.

Always prioritise your debts

Firstly, tackle debts that threaten your home, or could even result in you being imprisoned, including rent, mortgage, electricity/gas and council tax arrears. You may be able to help your debt problems by arranging a debt management plan with a specialist debt solutions company, such as debts.org, who will give you free advice.

Make a list of debts and draw up a budget

Even if it does make scary reading, make a list of your outgoings and income every month, using an online budget calculator, and review your spending. A specialist debt management company in the UK can help with debt relief and debt management plans to suit your needs. Cut back on expenditure wherever possible. You could, for example, use comparison websites to find cheaper utility options for gas and electricity.

Plastic debt solutions

Always pay more than the minimum repayment required on your credit card debt. Even if you only pay a few pounds extra a week, your credit card debt can be paid off a lot quicker as interest does not accumulate.Free independent debt advice from debt management specialists
To arrange a debt management plan or an independent voluntary arrangement, you can contact debts.org who will give you free advice and guidance. You can also contact The Consumer Credit Counselling Service (CCCS), or Credit Action, which offers guides and resources.

Never borrow more money to pay off other debts

Borrowing more money to pay off existing debts is likely to burden you even more, unless it is part of a structured debt help plan.

Beware of debt consolidation

If you are looking to consolidate your debts, be aware that consolidation loans are secured on your home. Many of the debts you are trying to pay off are not secured debts. In many cases debt consolidation loans can work out more expensive than if you negotiate with your creditors directly.

Choose the right debt management company

Since the credit crunch began to take its toll, debt management companies have sprung up all over the place. It is important you choose a debt management company that will give free advice, and one that is right for you. At debts.org we understand that everyone´s debt problems are different, and we our trained staff will do their utmost to find you the best debt management plan (DMP) or individual voluntary arrangement (IVA) to suit your individual needs.

Bankruptcy and IVA debt solutions

If your debts seem to be running out of control, you may be advised to take an individual voluntary arrangement (IVA) or even to declare bankruptcy. There is no easy way out of debt, but a structured plan of action will take the weight off your mind and also give you breathing space with your creditors. An IVA is a formal agreement to repay a percentage of the debt for up to 5 years. By taking advantage of an IVA, you will not have to pay the full amount back and you will be debt-free in 5 years.

Share your debt problems

You may know friends or members of the family who have also suffered financial hardship and debt problems. Share your problems with them, and you are more likely to find out the best people to contact and the best ways to save money on the bills.

It is difficult for a lot of people to admit they are in debt, and they feel uncomfortable talking about it. Our friendly, trained staff at debts.org are used to talking to people who feel embarrassed or awkward about the extent of their debts, and we always offer a sympathetic ear and free advice. We will try to help you arrange your debts into affordable monthly payments, giving you peace of mind and plenty of breathing space to re-organise your finances.

Labels: Debt Management Plan