Debt Counsellors and Debt Control
Debt levels in the UK are getting higher and higher.
An increasing number of people are finding it a real struggle to keep up with repayments on their unsecured loans, credit cards and other miscellaneous debts.
The main problem is that a lot of people find it easier to stick their heads in the sand while their debts increase which obviously makes the problem worse.
It's clear that those of us who run into debt are unclear about the options available and luckily there is a good range of debt help options depending on your financial situation.
If you are struggling with a number of debts and part of the debt is a secured loan then you must continue to pay off this loan as it secured against your home.
Non-payment of such loans could result in you losing your home.
Once you have established the full extent of your debts you can take a number of steps to get all your debt under control.
One of the fastest and most efficient ways to clear your debt is to get in touch with a debt counsellor.
And you don't necessarily have to pay for that help.
They will be able to sit down with you and go through all the debt help options available, depending on the amount of debt you have.
The first stop the counsellor will suggest is to write to all your creditors with a proposal to accept lower payments each month.
Some of the creditors may not be happy with this and will refuse immediately whereas other maybe more flexible depending on your level of debt.
In order to get the maximum amount of creditors to agree you will need to offer a reasonable and realistic sum of money each month.
Although you could end up paying less each month it doesn't necessarily mean you end up paying less.
It could be that you end up paying off the debt over a longer period of time.
Another option similar to the above is the Debt management Plan.
With this option your counsellor will once again draw up a contract for your creditors to agree on.
The amount you pay into the plan is based upon your disposable income on a pro-rata basis depending on how much you owe each creditor.
A single monthly payment is then made to the counsellor and this is then distributed amongst each of the creditors.
With this type of plan the benefit is the counsellor can normally get the creditors to stop any additional interest charges keeping the debt to a minimum.
If your debts are over £15,000 the counsellor may well suggest an IVA.
The Individual Voluntary Arrangement is a government backed debt help solution, which has become very popular in recent years.
The IVA can help to reduce your debts by up to 75% and all your debts can be cleared off over a 5 year period.
Once again the IVA needs agreement from your creditors and has become a viable alternative to bankruptcy.
An increasing number of people are finding it a real struggle to keep up with repayments on their unsecured loans, credit cards and other miscellaneous debts.
The main problem is that a lot of people find it easier to stick their heads in the sand while their debts increase which obviously makes the problem worse.
It's clear that those of us who run into debt are unclear about the options available and luckily there is a good range of debt help options depending on your financial situation.
If you are struggling with a number of debts and part of the debt is a secured loan then you must continue to pay off this loan as it secured against your home.
Non-payment of such loans could result in you losing your home.
Once you have established the full extent of your debts you can take a number of steps to get all your debt under control.
One of the fastest and most efficient ways to clear your debt is to get in touch with a debt counsellor.
And you don't necessarily have to pay for that help.
They will be able to sit down with you and go through all the debt help options available, depending on the amount of debt you have.
The first stop the counsellor will suggest is to write to all your creditors with a proposal to accept lower payments each month.
Some of the creditors may not be happy with this and will refuse immediately whereas other maybe more flexible depending on your level of debt.
In order to get the maximum amount of creditors to agree you will need to offer a reasonable and realistic sum of money each month.
Although you could end up paying less each month it doesn't necessarily mean you end up paying less.
It could be that you end up paying off the debt over a longer period of time.
Another option similar to the above is the Debt management Plan.
With this option your counsellor will once again draw up a contract for your creditors to agree on.
The amount you pay into the plan is based upon your disposable income on a pro-rata basis depending on how much you owe each creditor.
A single monthly payment is then made to the counsellor and this is then distributed amongst each of the creditors.
With this type of plan the benefit is the counsellor can normally get the creditors to stop any additional interest charges keeping the debt to a minimum.
If your debts are over £15,000 the counsellor may well suggest an IVA.
The Individual Voluntary Arrangement is a government backed debt help solution, which has become very popular in recent years.
The IVA can help to reduce your debts by up to 75% and all your debts can be cleared off over a 5 year period.
Once again the IVA needs agreement from your creditors and has become a viable alternative to bankruptcy.
