SimplyFinance - Debt Management

Finding a Debt Management Service

2007-08-13T23:00:00Z

Sometimes, it cannot be helped when financial emergencies crop up and you feel that you are losing control of your ability to manage your finances. No matter how close you keep track of your spending habits, financial emergencies and unexpected expenses often get in the way, and you need to dig deep into your savings, leaving you with a significant amount of debt. If you feel that you are in deep water with your debt, and you are paying way too much for your debt as compared to what you are actually earning, then it may be time to seek for professional help.

What can a debt management service do for me?

A debt management service is a financial establishment that acts as a mediator between you and the companies that you owe money to – be it a creditor, a bank, a lending investor or the company who provides you with your credit card. If you feel that you are paying way too much in interest to a number of companies, a debt management company will combine the debts that you owe and collect from you a single amount per month, which will be subdivided between the creditors to whom you owe money. For a monthly premium, you will receive their debt management services, and the company will take care of paying your monthly payments to the various companies where you have a debt.

What are the benefits of finding a debt management service?

There are several benefits to seeking the services of a debt management company. First, you do not have to worry about the interest piling up because the debt management company is composed of a team of credit experts who know the ins and outs of the lending industry. In essence, what they will do is act as a negotiator between you and your creditors so that you can carefully find your way out of the debt trap that you are in. Second, there will only be one fixed amount that you have to pay per month, as compared to several monthly payments that you owe to different creditors, which may even have different due dates that may or may not coincide with the day of the month that you get paid at work. Finally, finding a debt management service will hel you regain control of your finances.

How do I go about finding a reputable debt management service to help me with my finances?

You can find almost anything online these days, and looking for a debt management service is no exception. There are a number of sites, such as this one, that provide you with a form to fill out. Once this is done, we will introduce you to a qualified debt management service representative. This person will answer all your debt management questions before they start you on your way to financial freedom. Remember though that debt management may not be the best option for every person who is deep in debt, so be wary of companies who claim that debt management is the only way out.

Referrals from friends, financial experts or even your creditors and banks are also a good way of looking for a reputable debt management company. Look for other clients who have been helped out of a debt by the company that you are contacting to have an idea of how the service works as a whole.

How will this affect my credit status?

A good debt management service provider will be able to negotiate a reduction of interest rates once all your debt has been consolidated. This means fewer late payments so your credit status should remain minimally affected.

Generally, finding a debt management service to assist you with handling your numerous debts works best for those who have unsecured debts, such as the charges that incurred in credit cards. It is not recommended for people with secure loans like an auto loan or a home mortgage.

However, once you have gotten a hold of a reputable debt management service provider who will assist you in managing your numerous debts, you financial worries will be on their way out. Not only will your monthly obligations be reduced to just one amount per month, but the credit experts will also give you invaluable advice on how to avoid such debt traps in the future.

If you would like to learn more about debt management and possibly find a debt management solution, take a second to fill out this quick form, and a representative of SimplyFinance will contact you shortly. They will introduce you to a debt specialist that will answer all your questions before searching to find the best debt solution for you and your financial needs.

CLICK HERE TO CONNECT WITH A DEBT MANAGEMENT ADVISOR TODAY!

The Advantages of Debt Management

2007-07-23T23:00:00Z

There are many advantages and benefits of considering taking advantage of a debt management service. Here are just a few of them to get you thinking:

* Your debt may be reduced from up to 75-95%.

* A third party will take control of your debt. They will deal with your creditors to help lower your monthly costs.

* Most debt management programmes are government backed.

* Debt management provides a higher level of financial structure. It allows you to become more organized with set, scheduled payments.

* Regardless of the degree of debt you're struggling with, you will be able to get help to solve your problems.

* These services may help you avoid legal complications with your creditors.

* You are provided with free advice from real specialists.

* Leading debt management companies provide fast service. You may be debt and stress free in as little as 24 hours.

* Many sites provide simple online application forms.

* You only need to write one check each month to pay all of your debts.

* Your creditors' telephone calls and demands for payment will stop.

* This is a legal way to write off a large amount of your outstanding debt.

* Debt management services provide an alternative to bankruptcy.

* Though you may be paying off your debt over a longer period of time, your monthly payments may be reduced to as little as £100 each month.

* When using a debt management programme, there is no set period to pay off your debts. You may use the service until you regain control of your finances.

* In many cases, your interest charges are frozen or seriously reduced.

* These services provide another option to debt consolidation. Instead of dealing with your debt on your own, as with a debt consolidation loan, with debt management, an advisor works with your creditors to reduce the amount of money you need to pay.

* A debt management programme may take an enormous amount of pressure off of you by giving you a trained professional to help you with your financial crisis.

CLICK HERE TO FOR A DEBT MANAGEMENT ADVISOR TODAY!

Seeking Debt Advice

2008-01-08T00:00:00Z

There are many ways to get into debt and, thankfully, there are also many ways to get out of it. Whether you go it alone or enlist the help of a debt counseling agency to get some debt advice, there are different types of debt help to get you out of trouble. The most common solutions to debt given by debt advice professionals are listed below.

Remortgaging

If you find yourself seriously in debt and you own a home, a debt advice professional may recommend that you remortgage to release the equity in your home and to use the money from this to pay off your debts. This can be a wise option in many cases as the interest rates on mortgages are usually lower than any other kind of debt.

Getting a remortgage involves ending your current mortgage and starting a new one. This often involves changing lenders, but this can often work to your advantage as you may be able to find a better deal with a new lender. However, there are a number of factors that a debt advice professional will help you to keep in mind when exploring this option. If you are paying a fixed rate you may be liable for steep fines, or redemption charges, to cancel your current arrangement.

Also, if you are in a position to change, make sure your new deal and/or lender is flexible and that you will have freedom to remortgage in the future if you choose so. In addition, inquire whether your new lender offers any perks for new customers. Many will cover the costs of the valuation of your home and legal fees. Get the best deal you can!

When considering taking a remortgage loan to pay off your debts, be sure to seek debt advice before committing to anything. A debt advice professional will help you keep things clear and will help you weigh the pros and cons of taking a remortgage loan to repay your outstanding debts.

Consolidate Your Debts

Another option given by debt advice specialists, which offers some similar benefits to remortgaging, is to consolidate your debts into one loan. Basically, this involves tallying the sum of your debts and taking a term loan out for that amount. Again, the interest rate will most likely be much lower than your current debts. Use this money to clear your debts and then begin repaying the loan with one easy repayment each month.

However, because you are already struggling financially, banks will be reluctant to give you a loan. You will have to offer up some kind of security against the loan, such as equity on your home if you already have a mortgage.

When considering a consolidation loan, as when considering a remortgage to repay your debts, it is best to get some debt advice before proceeding with any agreements. A debt advice specialist will help you put your decision into perspective so you can see if it's really the best option for you.

Debt Counseling and DMPs

Debt counseling is an increasingly popular option given by debt advice specialists to people looking for help in getting their finances in order. These services will help you make a total of your incomings and your outgoings, calculate your disposable income and come up with a realistic monthly plan for you to pay off your debts. Debt advice specialists will also help you make a budget and keep to it. All of this usually comes in the form of a debt management plan (DMP). DMPs are recognised by many financial institutions and can be very helpful when entering into negotiations with banks. Although they may not save you a huge amount of money, these services are invaluable when it comes to organising your finances.

IVAs

An IVA is a formal, legally-binding agreement between a debtor and their creditors to settle debts within a reasonable timescale, usually five years.

IVAs are becoming increasingly popular among debtors in Britain who are struggling to keep up with repayments. They offer a very useful alternative to bankruptcy, and they are popular among creditors because they generally stand to recoup more of their money than they would if you declare bankruptcy.

With the help of an insolvency practitioner, you submit a proposal to your creditors outlining the reasons for your financial problems, how much you can repay monthly and other details. If accepted, you make monthly payments and all outstanding debts are written off at the end of the agreed term. Debtors have been known to have as much as 75 percent of debts written off using this method.

While an IVA sounds great, it's best to discuss all available options with a debt advice specialist before committing to any one plan of action to reduce your debt.

Bankruptcy

Bankruptcy is a word that strikes fear into the hearts of many, and it is often seen as a last resort. Debt advice resources will tell you to very carefully consider all other options before resorting to bankruptcy. However, a bankruptcy will free a debtor from pressures from creditors, and it will ensure all assets are divided equally among creditors.

Bankruptcy has a lot of stigma attached to it as it is publicised, and it leads to a poor credit rating for six years.

As seen above there are many types of debt advice available to you. Which one you choose should depend entirely on you circumstances and your preferences. Before entering in to a remortgage, a debt consolidation loan, a debt management programme, an IVA or bankruptcy, take some time to find reliable debt advice from a debt advice specialist. A debt advice specialist will be able to help you weigh all of your options so that you're sure you're making the best decision for your particular situation.

If you would like help making a decision about what debt solution to choose, and if you'd like help finding an agency or a debt advice professional to help you, take a moment to fill out this simple form, and a SimplyFinance representative will contact you shortly to introduce you to a debt advice specialist. This debt advice specialist will answer all of your debt questions before finding the best debt relief program for you.

CLICK HERE TO CONNECT WITH A DEBT ADVISOR TODAY!