It is no secret that many people in the UK are debt-ridden; living beyond paycheck, borrowing money for major purchases, spending on unnecessary items etc are some of the common reasons why many individuals incur huge debts on their heads. If the problem of debt is ignored, it can trigger serious issues including bankruptcy. However, you can definitely avoid such a scenario through effective debt management.
Effective debt management starts with your monthly income and expenditure statement. Prepare your income and expense statement, and find out items and expenses that are unnecessary. Over-insurance, spa visits etc are some of the expenses which you can discontinue and cut down your monthly bills. In this way, you will be able to save some money each month. Similarly, assess your buying habits. For example, if you buy groceries daily, make it a habit to buy basic necessities in bulk. This will save considerable amount of money on your purchase.
Once you manage to cut down unnecessary expenses and save money, make a list of debts you owe to others. Assort the list with the lowest debt on the top. Now, use the money you save each month for paying this debt. Keep on repeating the procedure every month. After some months or a year, you will be able to get out of all of your debts.
However, if you have huge amount of debt with various creditors, seeking debt advice from a reputable debt settlement professional is a better bet. Many debt settlement experts can be found who helps individuals to get rid of their debts. Make a thorough enquiry offline and online, and list down the names of reliable professionals who are popular for rendering top class debt management services. After comparing different professionals, pick the best one who offers cost effective services to get you out of debt.
Can you get a Free Debt Management Plan can you find a solution can you resolve it today !
Posted by coitticku | Posted in Advice and Debt Help | Posted on 06-04-2013
You’re in debt, but it is not the end of the world. There are ways to get yourself out of debt and there are debt relief strategies designed just for your personal situation. It doesn’t matter how you got into the debt, everyone has a slightly different story. What does matter is the next step that you make. It would be easy to ignore the bills coming through the door, but that will not solve any of the problems.
Your first step should be to find out what situation you are in. You will have to open the bills and statements to see how much you owe and when are the debts due. Make a list of the debts, how much you have to pay each month and how many months you have left on the payment schedule. Allowing yourself to see the full picture and understand your outgoings will let you get a grasp on what to debt help you need.
If your monthly income is enough to cover all the repayments, then you have the ability to solve your debt problems yourself.
If you are only a small amount away from paying your monthly bills, you can adjust your spending temporarily to manage your bills. You might have to change your pay TV deal and your mobile phone contract. But remember this is only until you have paid off your debts.
If you are not able to adjust your finances to pay off your debts, you will have to look at financial support. There are a variety of options available to you, these range from a consolidation loan which would let you move all of your debt into one monthly repayment. An IVA might be available to you, this will reduce your monthly payments and will ensure they are manageable.
When you are in debt, you might not think you can get debt help, but there are solutions made specifically for your needs.
Posted by coitticku | Posted in Debt Solution | Posted on 19-03-2013
Numerous marketing campaigns on the TV, in newspapers and magazines and even marketing phone calls encourage you to get rid of debts by entering into a Debt Management program or an IVA. These are two different ways of reducing the amount of money you pay out each month and are only appropriate for unsecured debts.
Debt Management in the UK as a Solution or maybe looking at an IVA
Debt Management companies will look at all your outstanding debts, your income and your expenditure on daily living expenses. Any available surplus cash will be put towards apportioned payments to unsecured creditors. The company will contact creditors directly, make all the arrangements and ask for any interest and charges to be frozen so the debt does not increase. Some companies have fees that are deducted from the monthly amount you pay, so not all the money you pay on a monthly basis is going to your creditors, however there are organisations who offer these services for free, or you can do this yourself.
Opting for an IVA as an alternative
An IVA, which is short for Individual Voluntary Arrangement, allows you to write off a portion of your debts. It is controlled by an Insolvency Practitioner, regulated by the courts, is for a set period of time, usually 5 to 6 years, and you only pay back an agreed portion of the debt, the balance being legally written off. Once you have paid the agreed reduced amount, you will be issued with a certificate of satisfaction, and you will then be debt free.
Pro’s and Cons
Using Debt Management companies can alleviate stresses involved in dealing with your creditors. Both options reduce the amount you have to pay on a monthly basis, however only with the IVA option can you legally write off a percentage of your debt, and be debt free in a few years.