SimplyFinance - Debt Help

How Can Debt Management Help You?

2008-05-14T23:00:00Z

Debt management means that you hand over the management of your debts to a hired third party. This person sums up all of your debts, figures out what you can actually pay per month, contacts your creditors to negotiate a different repayment schedule, often involving reduced payments and frozen interest rates, and basically consolidates your loans into one. You make one monthly payment to the debt management organization, and it then doles out the repayments to your creditors.

So, how can debt management help you? First of all, by hiring a debt manager, your emotions are removed from your debt situation. While caught up in the present anxiety of debt distress, it may be difficult to see a way out and to make good judgments. Handing over the management of your financial situation may be the best first step out of debt that you can take.

Secondly, the debt manager should be professionally trained in how to deal with situations like yours and in how to resolve problems such as yours. He or she should know what works and how to make the known solutions work for you.

A third way that debt management can help you is by simplifying your finances. As previously mentioned, generally the debt management company can, for all intents and purposes, consolidate your debts. Only having one due date, one payment, one interest rate, etc. can be very helpful in an overwhelming and confusing situation.

If you choose to work with a debt management company, do your homework. Get references from those you trust, including the Office of Fair Trading and the Financial Services Authority, and do this before divulging any of your personal information. And make sure to get all of the terms in writing. Whatever kind of debt management solution you choose, you want it to lead you out of debt, not further into it. So keep in mind the three ways mentioned above of how debt management can help you, do your research into the matter, and make the best decision based on your particular financial situation.

CLICK HERE TO CONNECT WITH A DEBT ADVISOR TODAY!

Personal Ways to Get Out of Debt

2007-08-15T23:00:00Z

There are many agencies and services out there that will help you deal with your debt problems. Some of these are charities while others will expect a fee. However, many people prefer to deal with their debt personally and in private. Here, we give you advice on the steps to take to deal with your own debt problems.

The secret to getting out of debt, or avoiding it in the first place, lies in good money management. In an age when credit is easily available to all, it takes a certain amount of willpower to spend within your means and avoid splashing out with your credit card.If you find yourself struggling with debt, the best way to deal with it is to come up with a realistic budget and stick to it.

The first thing to do is make a list of all your incomings. This should include your weekly or monthly wage and any other sources of income you have. Then make a list of your outgoings: rent/mortgage repayments, food, utilities, entertainment, etc. Examine these outgoings carefully and see where you can save a few pennies. Try some of the following tips for saving money.

Money Saving Tips

Join the loyalty card scheme at your local supermarket. Stores offer you points on your loyalty card every time you shop there which can save you money in the long run.
Sell your old stuff. Do a clear out of your belongings, and try to sell what you don’t want or need on eBay.
Examine your bills closely. See how you can cut down on costs. Try buying energy saving light bulbs or see what cheap/free telephony services are available on the internet. Basically, cut corners wherever you can.
Shop around for cheaper insurance, and see if you can negotiate lower mortgage repayments. Many mortgage providers offer mortgage holidays that might help you get back on track.
Do your shopping at the supermarket rather than the local grocery store, as they are significantly cheaper.
Try to limit your social life to one night out per week and/or look for cheaper alternatives.

Hopefully, some or all of these tips will make your financial picture look a little less daunting.

The next step is to subtract your outgoings from your incomings and figure out exactly how much you can spend on repaying your debts. It is also wise to put a little money aside for unexpected costs, such as emergencies, etc.

With a bit of luck, your new budget will leave you with enough left over to start paying off your arrears and to allow you to keep up with repayments. If not, you will have to come up with another solution.

Making Repayments

One option is to consolidate your debts. To do this you should first make a tally of how much needs to be repaid on all your debts, excluding your mortgage, if you have one.To consolidate your loans you will need to borrow this amount, 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.If you cannot, or do not wish to, consolidate your debts in this manner you will need to contact your creditors and negotiate a realistic repayment plan which you can afford and which they will accept. It is best to contact them in writing explaining why you need to reduce payments, detailing how much you can pay. With some negotiation you should be able to work out an arrangement that suits all parties.Once this is done, all you have to do is keep to your budget and keep up with repayments. Here are some tips for achieving this:

Set up separate bank accounts for living costs, debt repayments and savings. Allocate the appropriate amount to these accounts as soon as you get paid.
Choose an easy payment method. Maybe you can pay over the internet or at your local post office. The more convenient the better.
Shop around for the cheapest bill payment method; some charge a fee.
If you do miss a payment, contact the creditor immediately, explain the reason for missing the payment and come to an arrangement to make up the missed payment in the future.

It may take a little more will power and self-motivation, but there is no reason why you can not overcome your debt problems. However, there is plenty of help and guidance available which you shouldn’t be afraid to make use of if you run into trouble.

If after reading this you feel you should consult a credit counselor about your debt issues, take a moment to fill out this simple form, and a representative of SimplyFinance will contact you to discuss your options. We will introduce you to a debt management service or a debt consolidation loan lender, depending on your individual circumstances. Let us help you get on the road to financial independence today!

CLICK HERE TO CONNECT WITH A DEBT ADVISOR TODAY!

Finding Debt Help

2007-08-15T23:00:00Z

Finding debt help in Britain today is not as tricky as it once was. As little as 20 years ago a consumer would have to look long and hard to find an agency or a service that would offer them debt help. This is not so today. There are hundreds of charities and agencies just a phone call away that provide debt advice on how to stay out of debt, or if you are already in it, the best way to clear what you owe. It is also easier than ever before to get credit in this country. There are hundreds of credit cards on offer and they are handed out to consumers far more easily than before.

British consumers owe more than £1,004,290,000,000 on credit cards, mortgages and loans, which is over £17,000 of debt for every man, woman and child in the UK. It is not surprising, then, that more and more people are overspending and finding themselves struggling to keep up with repayments. Thankfully, there is plenty of debt help available.

A Google search or a leaf through the yellow pages will reveal a huge choice of debt counseling agencies. Many of these are non-profit agencies that provide a quality service and are the first port of call for many people seeking debt help. There are also many private agencies that will charge a fee for their debt help services, but they may be able to devote more time to your needs than a non-profit agency would be able to. Or alternatively, you could go it alone. There are countless books, magazines and websites that give advice on tips and tricks to get out of debt.

Whatever method you choose, you will be faced with the same choices and, in the end, the money must be repaid somehow. But there are a number of debt help options available:

Debt Consolidation

One debt help option is debt consolidation. Basically this means adding up the total of your debts and taking out a loan to pay them all off in one go. You will, of course, still have to pay the loan but the repayments are likely to be significantly cheaper than if you were paying all of the debt payments separately each month. Interest on a credit card debt is about 20 percent, while a consolidation loan would cost closer to 6 percent, which is a significant difference. Interest rates on hire purchase, store cards and other common debts also tend to be high so there is a lot of money to be saved from debt consolidation.

The main problem with debt consolidation is that lenders will be reluctant to give you such a loan if you are already in financial trouble. Unfortunately, you will probably be required to provide something of significant value as collateral. People often refinance their homes or get second mortgages, or use the equity on their home as collateral.

Debt consolidation loans tend to be paid back over a long period of time. You should try to repay the debt as quickly as possible because the longer the term of the loan, the more it will cost you.

Debt Management Plans

As mentioned above, debt counseling provides the most common option for people looking for debt help. 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.

They 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.

Debt counseling agencies are also skilled in negotiating with banks. They will usually be able to negotiate a reduced rate of interest from creditors. However, it is vitally important to keep up repayments once an agreement has been reached, or it could make a very serious negative impact on your credit rating. But if you do keep to it, this debt help option can be a quick and effective method of getting out of debt.

Debt Settlement

A much less commonly used approach to debt help option is debt settlement. You must consult with a debt settlement company to come up with a monthly payment schedule that is within your budget, and it will plan a timeline of when you can pay off your debt.

Most companies estimate the full repayment as a 50 percent settlement plus fees. It is possible to become debt free in this manner usually within 24 to 36 months. However, it can negatively impact your credit rating.

Finding debt help is not really a problem in Britain these days as there is no shortage of debt help options. The trick to getting out of debt fast lies in examining the debt help options available to you and making the best choices relating to your situation.

If you would like to learn more about debt help and possibly find a debt help 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 help specialist that will answer all your questions before searching to find the best debt solution for you and your financial needs.

If you're in need of debt help, it's best to start finding a solution today. The longer you wait, the more difficult it will be to find an effective debt help solution.