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Get started with cheap IVA debt management

Posted by | Posted in Debt Management | Posted on 13-07-2011

IVA debt management is a solution to every debt problem. Being based in the U.K, now IVA debt management are providing number of solutions to people those that are in need of their help. They have hit the television with big news and now are considered to be one of the experts. IVA debt management was started in the year 1986, perhaps during those times, when debt was not as much of an major problem than it is now. IVA debt management act as mediator between two parties.

So what exactly do they do in helping people come out of the burden of debt. Well, first of IVA debt management defines debt management as a plan or informal arrangement that is made to organise your debts. IVA debt mananagement pave a way for the debtor to pay their creditor the amount owed within the duration of five consecutive years. Now, there are several clients of IVA debt management those that have really thought that this worked out for them, and therefore were able to get rid of all their debts. These clients are now living a stress free life with the assistance they sought from IVA debt management.

It is also significant that IVA debt management has kept some protocol with their clients. Just as the doctor gives a list to the patient after a diagnosis that the patient oughts to follow, the same is done by the debt management with their clients who are seeking to come out of debt. According to them, it is a mutual process that works from both sides. They expect their clients to follow the protocol set under their guidelines that can help their clients live a free life. Some clients choose to follow the protocol while some take it as a pinch of salt and some leave it at that. Now it truly depends on you, who could be the client, it is upto you whether you take their advise as it is or you leave bits and pieces and get grinded in the debt again.

There are some who get really excited first in following the protocols, but sometimes in between they get disillusioned and side tracked and go back to circle one again. Now this is not how it is suppose to be, therefore it is so important to really follow as told, if you are serious in getting out of debt.

Debt Consolidation Advantages

Posted by | Posted in Debt Management | Posted on 27-03-2011

There are many kinds of debt that most people incur such as credit card debts, mortgage, and students loans among other. It is possible that all these debts will add up to a point where it can become unmanageable for a single individual to handle. But there are methods to get out of this financial rut; debt consolidation can be one of the best solutions to this problem.

Basically, debt consolidation will enable you to consolidate all your debts into one so you will benefit from lower interest rates and lesser problems to deal with. If you own a house then it might be a good idea to use your home equity as your security. In this case, your house will be used as the security against the loan meaning the creditor will have a lien on your house until such a time when your debt is paid in full. You might be wondering why this is a good idea since you are putting your own house at risk. But it actually is a good idea because it has many advantages if you are really serious about getting out of your financial trouble.

Some of the advantages you can expect include keeping the creditors away from you since they have your house as their collateral anyway. You can also keep yourself away from bankruptcy because of this. In addition, you can expect smaller monthly payments that are due.

But note that while debt consolidation certainly offers a glimmer of hope for an individual who has a lot of debt, it is not without its disadvantages. For one, it is very possible that you may end up paying much more interest rates than you expect when you decide to take advantage of the option to pay off your debts in a longer time frame. Of course, this extending the time frame of your loan will entail additional interest rates.

You should remember that the main purpose behind debt consolidation is to let individual avail of lower interest rates at a longer time frame. It is also possible that debt consolidation may not work for you if you can actually pay off your debts in a shorter time frame. Ultimately though, it is your choice whether you want to take advantage of debt consolidation services or not.

There are many debt consolidation companies that offer their services to people who need help, and usually, the kind of service they offer is the same. However, you should still choose your debt consolidation company wisely because they may the key to helping you get out of debt permanently. You should also consider looking into other services they offer such as financial guidance and budgeting. When you take advantage of these services, you can expect that you will be free from debts in no time. But you should always remember that the real key to getting out of debt is knowing the root of your problem so that you will be able to avoid the debt scenario in the future.

Credit Card Debt Consolidation Best Methods

Posted by | Posted in Debt Management | Posted on 04-03-2011

Credit cards are the safest way to make payments, which carry no risk of theft or anything else. To avoid credit card debt you are advised to make payment before statement date. If you are already under the threat of credit card debt then you are recommended to take credit card debt consolidation loan to consolidate credit card debt.

Here are some best methods for credit card debt consolidation.

You can apply for credit card debt consolidation through Internet or by applying to your local creditors. Both secured and unsecured forms of Credit card debt consolidation are available in market to choose from, it will be better to take an unsecured loan because a miss payment may lead you lose your security.

For credit card debt consolidation you should take loan from a single creditor because it is easy to pay to a single creditor than to pay to multiple creditors.

With credit card debt consolidation you can get better rates as your new creditor will offer you easy terms with lower monthly installments and lower interest rates.

You can make your life simple with credit card debt consolidation by paying one bill per month, which will cut a lot of stress and bill paying time.

If you are unable to take credit card debt consolidation loan at your desired low interest rates then you can borrow needed money from your life insurance policy to eliminate credit card debt.

Of course, the best method to consolidate credit card debt is to minimize the use of credit card, which is in debt, and to transfer the balance to a lower or zero interest credit card.

Credit card debt help is usually available for both personal and business debt problems at most financial services.Do not postponing taking care of your credit car debt. You can lose a lot of money!

Collection Harassment & Resolving Debt Pt. 1

Posted by | Posted in Debt Management | Posted on 09-02-2011

So you are getting collection calls? You’re desk is full of unpaid bills. You dread answering the phone. You are having trouble sleeping at night because you are worrying about a bunch of bills. You feel depressed.

Does any of this sound familiar? If it does then, maybe this article can help you. First of all you need to realize that you are not the only one. You are not alone. Then you need to know that there can be light at the end of the tunnel.

This article is not meant to be legal advice. It is to let you know your rights under the law. Perhaps it will steer you in the right direction. As this site is targeted for residents of Jacksonville, I will only deal with Florida statutes. I will explain your rights under the Fair Debt Collection Practices Act (FDCPA). This is legislation that was enacted in 1977 to stop abusive collection practices. I quote the Florida State Attorney General How to Protect Yourself: Debt CollectionsConsumer Source: The Florida Attorney General’s Office

You may have questions relating to debt collections if you are contacted by a “debt collector,” someone who regularly tries to collect debts owed to others. A debt collector may contact you if you are behind in your payments to a creditor on a personal, family or household debt, or if an error has been made in your account. A debt collector may contact you in person, by mail, telephone, telegram, or fax. However, a collector may not communicate with you or your family with such frequency as can reasonably be expected to be harassing. A debt collector may not contact you at work if the collector knows your employer disapproves. A collector may not contact you at unreasonable times or places, such as before 8 a.m. or after 9 p.m., unless you agree.

A debt collector is required to send you a written notice within five days after you are first contacted, telling you the amount of money you owe. The notice must also specify the name of the creditor to whom you owe the money, and what action to take if you believe you do not owe the money. You may stop a collector from contacting you by writing a letter to the agency telling them to stop. Once the agency receives your letter, they may not contact you again except to say there will be no further contact, or to notify you if the debt collector or the creditor intends to take some specific action. If you do not believe you owe the debt, you may write to the collection agency within 30 days after you are first contacted saying you don’t owe the money. The agency may not contact you after that unless you are sent proof of the debt, such as a copy of the bill.

A debt collector may not harass or abuse any person. For instance, a collector may not use threats of violence against the person, property or reputation, use obscene or profane language, advertise the debt, or A debt collector may not use false statements, such as: falsely implying that they are attorneys, that you have committed a crime, or that they operate or work for a credit bureau or misrepresenting the amount of your debt, the involvement of an attorney in collecting a debt, or indicating that papers sent to you are legal forms when they are not. Debt collectors may not tell you that you will be arrested if you do not pay, that they will seize, garnish, attach, or sell your property or wages, unless the collection agency or creditor intends to do so and has a legal right to do so, or that a lawsuit will be filed against you, when they have no legal right to file or do not intend to file such a suit.

If you have a question about whether the collection agency which has contacted you is properly registered, you may file a complaint either with the Attorney General’s office or the Federal Trade Commission, Correspondence Branch, Washington, D.C. 20580. You may file suit against the collection agency for violating state andor federal law. If you prevail, you may be awarded your actual damages, attorney’s fees and costs. The protection he mentions is from the FDCPA. The FDCPA is not a Florida law. It is a federal law. The law provides for stiff penalties for debt collectors (i.e. the actual collector or the company or agency for which heshe works). This means that you do not have to put up with collection harassment or being insulted or threatened with such things as going to jail, criminal charges, seizing you wages, calling your employer or friends and family to tell them about the debt. You do not deserve this type of treatment and should not stand for it. They may not misrepresent themselves. They can’t tell you they are from the Sheriff’s Office, “warrants processing”, or an attorney’s office (unless they do work for an attorney). Most of the abusive practices are done over the phone. Letters and correspondence will usually comply with the law.

If you feel that a collector(s) are being abusive you have several options : 1) contact the supervisor or owner of the agency. The one on the phone is usually an hourly employee. Higher ups normally want their people to comply with the law as to prevent costly lawsuits against them.

2) You may also notify them that they are not to call you again. This should be done in writing by certified mail with return receipt so that you have proof that you did advise them not to call you. This is a no call request. You should only do this after repeated incidents. Why do I say this? You may get one call where the collector is rude. The next one you get may not be.

Having done collections for many years, I often had calls where the person was angry from the last person they had spoken to. But by working with them I was able to come to a mutually agreeable solution. So because you had one bad experience doesn’t mean they are all like that.
Many collectors strive to stay within the law. But you do have the right to do this under the law.

3) Contact the Federal Trade Commission (http:www.ftc.gov).

4) Consult an attorney. The bottom line is that you don’t have to take abusive practices. Bear in mind also that they can’t harass you. Calling you one time every 3-7 days isn’t harassment. Calling you repeatedly on the same day after they have done spoke to you may be considered collection harassment. Calling before 8 am and after 9pm is against the FDCPA. An attorney can best determine if it is.

Perhaps the problem isn’t that you are being harassed or abused. You are behind and don’t know what to do. You know you owe the debt but don’t have the money to resolve it right now. Lets look at your options. Debt is either of 2 kinds. Secured or unsecured. A secured debt means that there is an asset that secures it, such as a house or a car. Unsecured is normally a credit card or similar account.

With a secured debt the creditor has the right to take possession of the secured asset if you do not pay. You may also be liable for the balance of what was owed less what the creditor sold it for. With an unsecured debt the debt continues going past due until it “charges off”. This means the creditor has to remove it from the books as an asset. This doesn’t mean they just “write it off” and the debt goes away. Typically they will either send it to a collection agency to try to recover or they may send it to a collection attorney to take action. This is up to the creditor to decide which action they will take.

Now less review your options.

1)Keep the lines of communication open between you and your creditor. They want to work with you to resolve it. It does neither you nor them any good if they have to repot your car or charge off your account. If you have run into problems, let them know.

2) Don’t promise something that you can’t do. If you can’t commit to an amount then don’t say you will. Creditors normally keep track of the number of times you break your promises and it some case it may influence their actions later on.

3) Most secured creditors will allow you to skip one or two payments and put it on the back of the loan. Each one has different rules for this.

4) Most unsecured creditors have programs to work with debtors. The most prevalent one is a “reage” or “cure” program. For instance, your monthly payment is £50. You are 4 months behind. You don’t have the money to catch it up. But you could make that £50 a month payment now. I have seen this scenario many times in my years as a collector. The statement is wanting £200 and they can only do £50. With a “reage” or “cure” program they would just have to resume making the £50 a month and after 3 months the account is current. Which means it will report to the credit bureau as current and it will not be getting late fees since it isn’t considered late any more. Call your creditor and ask about a “reage” program. They may call it something else.

5) Credit Card companies have a minimum payment, which is usually something like 2.5% of the balance plus any overlimit amount. I have seen many people get behind and have their credit affected by it because of this. View the example Credit limit balance Payment % Minimum MIN+ ovrlmt 1000 1100 3.0 £33 £133 In this example the payment being requested by the credit card company is £133. The person may get this and be unable to pay the £133. Instead they pay nothing. Hence their account goes past due.

The next statement the the amount is even greater since there was no payment the month before and it is even more overlimit because of finance charges, late fees and overlimit fees. However if the person had paid the £33(3% of balance) the account wouldn’t have went past due. It would still have gotten an overlimit fee but no late fees since it is still current on the payments. Check your cardholder agreement to determine the minimum payment percentage.

I realize this has been lengthy. I hope it has been of some help. Check back again for the next article in this series. If you know someone this can help, please refer them to the site.

9 Steps To Get Out Of Debt - Part 4

Posted by | Posted in Debt Management | Posted on 12-12-2010

Step 4 - Reducing Your Interest

If you have read the previous articles, so far you have learned how wide spread of a problem debt is, the true impact it can have on your life, and how to determine exactly how much debt you have and how much it will actually cost you. The next step is to attempt to reduce your interest rate. There are several ways you can accomplish this.

We’ll start by looking at what are typically known as the highest-interest debt, credit cards. Believe it or not, one of the easiest ways to do this is to simply call your credit card issuer and ask them to reduce your rate. This sounds laughable at first, but quite often it actually works. Credit card issuers typically charge customers much higher interest rates for the money they loan than what they pay to borrow it from others. This leads to huge profit margins, which means they really want to keep you as a customer, especially if you regularly pay your bill on time. They know you have plenty of options available, and are likely to switch to another credit card issuer if you feel you can get a better deal, so they’re happy to make a slightly smaller profit and keep you as a customer by lowering your rate.

If that doesn’t work, a second option is to find a lower-rate credit card and roll your balance over to it. You may be tempted to go with a card that has a 0% introductory rate. This is probably not your best option though, unless you plan on paying off the card within six months. What you want to look for is a card with a low permanent rate. There are several sites available to where you can compare credit cards from multiple issuers such as Creditor Web, http:www.creditorweb.com.

There are also several broader options available for credit cards and other types of debt. One of which is to look into refinancing any loans you have. Interest rates go up and down over time, and it’s quite possible the rate you can get now is lower than what it was at the time you originally financed the loans. Often there will be a refinancing fee involved, so use the amortization calculator from the previous article to make sure the amount you are going to save is greater than the amount you will have to pay.

You can also get a debt consolidation loan. You need to be careful when considering this option though, because although there are several legitimate companies offering debt consolidation loans, there are also several companies trying to make a quick buck at the expense of others. I highly recommend checking out any company you consider getting a loan through with the Better Business Bureau, especially if it’s not a reputable bank you are familiar with. In addition, once again use the amortization calculator to make sure you are actually saving money with the loan. Just because your monthly payments are lower doesn’t mean you’re saving money. £300 per month for 10 years is going to cost you more than £500 a month for 5 years.

The last option I want to suggest is for those of you who own a home. There are actually two options here, you can take out a second mortgage, or refinance your home for its current value and some additional funds, to pay off other debt. As with the one before, this can be both good and bad. It can be good because these loans typically offer the lowest interest rate because they are relatively safe loans for banks. That is also the same reason they are bad; if you do not pay them off, the bank can repossess your house. The other built-in benefit is by refinancing, you can often get a lower interest rate on your house, which can save you a bundle. As with the previous option, there’s often a refinancing fee, so use the amortization calculator, http:www.destroydebt.comcalculatorsAmortizationCalculatorJs.aspx to make sure you are saving money by doing this.

With all of these methods let me stress that you should be very careful not to fall into the same trap many others have. Too often families will take out a second mortgage or debt consolidation loan to pay off their credit cards, but instead of using this is a means to reduce their debt, they charge up all the credit cards again and end up in a worse situation than they were before. Don’t let this happen to you. Once you have refinanced to eliminate any credit card debt, close those accounts. Just keep one open for emergency use only until you get to a later step in this guide where you can destroy that one, as well.

Collection Harassment & Resolving Debt

Posted by | Posted in Debt Management | Posted on 19-04-2010

So you are getting collection calls? You’re desk is full of unpaid bills. You dread answering the phone. You are having trouble sleeping at night because you are worrying about a bunch of bills. You feel depressed.

Does any of this sound familiar? If it does then, maybe this article can help you. First of all you need to realize that you are not the only one. You are not alone. Then you need to know that there can be light at the end of the tunnel.

This article is not meant to be legal advice. It is to let you know your rights under the law. Perhaps it will steer you in the right direction. As this site is targeted for residents of Jacksonville, I will only deal with Florida statutes. I will explain your rights under the Fair Debt Collection Practices Act (FDCPA). This is legislation that was enacted in 1977 to stop abusive collection practices. I quote the Florida State Attorney General How to Protect Yourself: Debt CollectionsConsumer Source: The Florida Attorney General’s Office

You may have questions relating to debt collections if you are contacted by a “debt collector,” someone who regularly tries to collect debts owed to others. A debt collector may contact you if you are behind in your payments to a creditor on a personal, family or household debt, or if an error has been made in your account. A debt collector may contact you in person, by mail, telephone, telegram, or fax. However, a collector may not communicate with you or your family with such frequency as can reasonably be expected to be harassing. A debt collector may not contact you at work if the collector knows your employer disapproves. A collector may not contact you at unreasonable times or places, such as before 8 a.m. or after 9 p.m., unless you agree.

A debt collector is required to send you a written notice within five days after you are first contacted, telling you the amount of money you owe. The notice must also specify the name of the creditor to whom you owe the money, and what action to take if you believe you do not owe the money. You may stop a collector from contacting you by writing a letter to the agency telling them to stop. Once the agency receives your letter, they may not contact you again except to say there will be no further contact, or to notify you if the debt collector or the creditor intends to take some specific action. If you do not believe you owe the debt, you may write to the collection agency within 30 days after you are first contacted saying you don’t owe the money. The agency may not contact you after that unless you are sent proof of the debt, such as a copy of the bill.

A debt collector may not harass or abuse any person. For instance, a collector may not use threats of violence against the person, property or reputation, use obscene or profane language, advertise the debt, or A debt collector may not use false statements, such as: falsely implying that they are attorneys, that you have committed a crime, or that they operate or work for a credit bureau or misrepresenting the amount of your debt, the involvement of an attorney in collecting a debt, or indicating that papers sent to you are legal forms when they are not. Debt collectors may not tell you that you will be arrested if you do not pay, that they will seize, garnish, attach, or sell your property or wages, unless the collection agency or creditor intends to do so and has a legal right to do so, or that a lawsuit will be filed against you, when they have no legal right to file or do not intend to file such a suit.

If you have a question about whether the collection agency which has contacted you is properly registered, you may file a complaint either with the Attorney General’s office or the Federal Trade Commission, Correspondence Branch, Washington, D.C. 20580. You may file suit against the collection agency for violating state andor federal law. If you prevail, you may be awarded your actual damages, attorney’s fees and costs. The protection he mentions is from the FDCPA. The FDCPA is not a Florida law. It is a federal law. The law provides for stiff penalties for debt collectors (i.e. the actual collector or the company or agency for which heshe works). This means that you do not have to put up with collection harassment or being insulted or threatened with such things as going to jail, criminal charges, seizing you wages, calling your employer or friends and family to tell them about the debt. You do not deserve this type of treatment and should not stand for it. They may not misrepresent themselves. They can’t tell you they are from the Sheriff’s Office, “warrants processing”, or an attorney’s office (unless they do work for an attorney). Most of the abusive practices are done over the phone. Letters and correspondence will usually comply with the law.

If you feel that a collector(s) are being abusive you have several options : 1) contact the supervisor or owner of the agency. The one on the phone is usually an hourly employee. Higher ups normally want their people to comply with the law as to prevent costly lawsuits against them.

2) You may also notify them that they are not to call you again. This should be done in writing by certified mail with return receipt so that you have proof that you did advise them not to call you. This is a no call request. You should only do this after repeated incidents. Why do I say this? You may get one call where the collector is rude. The next one you get may not be.

Having done collections for many years, I often had calls where the person was angry from the last person they had spoken to. But by working with them I was able to come to a mutually agreeable solution. So because you had one bad experience doesn’t mean they are all like that.
Many collectors strive to stay within the law. But you do have the right to do this under the law.

3) Contact the Federal Trade Commission (http:www.ftc.gov).

4) Consult an attorney. The bottom line is that you don’t have to take abusive practices. Bear in mind also that they can’t harass you. Calling you one time every 3-7 days isn’t harassment. Calling you repeatedly on the same day after they have done spoke to you may be considered collection harassment. Calling before 8 am and after 9pm is against the FDCPA. An attorney can best determine if it is.

Perhaps the problem isn’t that you are being harassed or abused. You are behind and don’t know what to do. You know you owe the debt but don’t have the money to resolve it right now. Lets look at your options. Debt is either of 2 kinds. Secured or unsecured. A secured debt means that there is an asset that secures it, such as a house or a car. Unsecured is normally a credit card or similar account.

With a secured debt the creditor has the right to take possession of the secured asset if you do not pay. You may also be liable for the balance of what was owed less what the creditor sold it for. With an unsecured debt the debt continues going past due until it “charges off”. This means the creditor has to remove it from the books as an asset. This doesn’t mean they just “write it off” and the debt goes away. Typically they will either send it to a collection agency to try to recover or they may send it to a collection attorney to take action. This is up to the creditor to decide which action they will take.

Now less review your options.

1)Keep the lines of communication open between you and your creditor. They want to work with you to resolve it. It does neither you nor them any good if they have to repot your car or charge off your account. If you have run into problems, let them know.

2) Don’t promise something that you can’t do. If you can’t commit to an amount then don’t say you will. Creditors normally keep track of the number of times you break your promises and it some case it may influence their actions later on.

3) Most secured creditors will allow you to skip one or two payments and put it on the back of the loan. Each one has different rules for this.

4) Most unsecured creditors have programs to work with debtors. The most prevalent one is a “reage” or “cure” program. For instance, your monthly payment is £50. You are 4 months behind. You don’t have the money to catch it up. But you could make that £50 a month payment now. I have seen this scenario many times in my years as a collector. The statement is wanting £200 and they can only do £50. With a “reage” or “cure” program they would just have to resume making the £50 a month and after 3 months the account is current. Which means it will report to the credit bureau as current and it will not be getting late fees since it isn’t considered late any more. Call your creditor and ask about a “reage” program. They may call it something else.

5) Credit Card companies have a minimum payment, which is usually something like 2.5% of the balance plus any overlimit amount. I have seen many people get behind and have their credit affected by it because of this. View the example Credit limit balance Payment % Minimum MIN+ ovrlmt 1000 1100 3.0 £33 £133 In this example the payment being requested by the credit card company is £133. The person may get this and be unable to pay the £133. Instead they pay nothing. Hence their account goes past due.

The next statement the the amount is even greater since there was no payment the month before and it is even more overlimit because of finance charges, late fees and overlimit fees. However if the person had paid the £33(3% of balance) the account wouldn’t have went past due. It would still have gotten an overlimit fee but no late fees since it is still current on the payments. Check your cardholder agreement to determine the minimum payment percentage.

I realize this has been lengthy. I hope it has been of some help. Check back again for the next article in this series. If you know someone this can help, please refer them to the site.

Debt Management Program The Easy Way Out Of Debts!

Posted by | Posted in Debt Management Companies | Posted on 21-07-2009

When faced with debt problems, it makes sense to seek help from a debt management agency. Today, there are scores of alternatives available to those suffering from debt problems. It is very important to tackle the debt problems in an organized manner. If you are unable to find a way through the problem, it is advisable to seek help from experts. This will help you get over the problem quickly.
Contrary to the popular belief that loans can ease the debt burden, they in fact create additional pressure on the borrower. If you can keep up with the payments, it doesn’t pose a serious problem. This rarely happens as most of the borrowers lose track of the loans they opt for. The mounting debts and umpteen number of loans add on to the existing pressure.
Debt management program is a boon to such borrowers. This program will guide you to adopt simple solutions which can help you get over the debt problems quickly. Managing debts becomes an easy task. As a borrower, you should have a clear estimate of the amount of debts you owe. This will help you get a fair idea about the number of payments you need to make. Based on this, you can decide upon the amount of loan you need to borrow.

You can opt for a debt consolidation loan which will help you pay for all the debts through one single loan. Instead of making multiple payments for all the debts, you can make a single payment for all the debts. This will help you reduce your monthly outgoings and get a loan at a lower rate of interest too. Over a period of time, you can save a substantial amount of money.
Now, you no more have to worry about the harassing calls of the creditors. You stand to gain in the following ways by opting for this program:

  1. Any kind of borrower can opt for these loans.
  2. You no more have to deal with the creditors.
  3. You can also opt for an IVA which will help you avoid filing for bankruptcy. This, being a legally binding agreement between you and your creditor allows you to freeze your interest rates.
  4. It also helps you lower the monthly payments.

Most of the borrowers fear filing for bankruptcy as it affects their financial life negatively. Lenders hesitate in approving loans to them. They also end up losing all the opportunities. You can get free bankruptcy advice by doing some research online. You need not pay any fees for this. The best feature of this service is that you can get instant solution for all the debt problems and seek more knowledge on bankruptcy too. This is also the safest means of regaining control over your finances.

Debt Management UK: Filing For Bancruptcy? … Stop … “Think Again!”

Posted by | Posted in Debt Management Companies | Posted on 20-07-2009

We face financial crunches time and time again and therefore take loans to help us get through the situation. However, many a time we make a mountain out of a mole hill – making a small economic snag seems like an impossible accomplishment and so … we take loans again! In UK especially, taking a personal or consolidation loan has become a part of life. Often, misjudging our circumstances, we fall further and further into debt. And since we’ve always been told that there’s a solution to every problem, here is another concept that we have created, that has survived over time, it’s called Debt Management UK.

Sometimes, while in the process of paying up umpteen loans, the varying high interest rates, innumerable monthly payments to be sent out to different lenders and demands of everyday life begin to take their toll on us. This is why most of us fail to keep up with our regular payments. Result: constant harassing calls from our lenders, incessant collection visits and reminders and finally, legal notices. This is where Debt Management UK is commonly suggested. Debt Management UK is a process which involves informal negotiations with your creditors so as to achieve either a reduction in the interest, a reduction in the complete contractual payment or waiver of any additional charges like creditor fees, processing charges, etc.

A Debt Management process is initiated only once borrowers provide proof that they have insufficient funds to meet all the contractual niceties. This is followed by a negotiation with their creditors regarding their inability to repay the entire loan. Most lenders prefer a settlement with Debt Management UK because if they don’t, the next option for the borrower is filing for bankruptcy. No lender can get anything out of that! Most creditors understand the problem and offer solutions to make repayment easier. They may also waive off some part of the loan. Expert advice from credit counselling agencies makes the process a lot simpler. These agencies even negotiate with lenders on your behalf and help you repay your loans.

Points to remember for Debt Management:
1. Make a budget and keep to it:
While making a budget, be specific and detailed with it. Try your level best to stick to it. The more you write down and record your financial transactions, the more likely you are to stay on track. You’ll be amazed at how much money you spend on things you don’t really need. Your budget should define how much money you’ll send to each of your creditors monthly, how much you need for bills, and how much is left for flexible spending. Make sure you limit the amount kept aside for flexible spending.

2. Evaluate your debt situation:
Assess your financial standing – your spending and your savings. When taking your loans into consideration, remember to include the principal amount, the interest, creditor charges, etc. Include all other debt and owed amounts.

3. Clear your debts one by one:
While sorting out your situation, even though you cannot make the regular payments, try to send small amounts toward all your loans. Eliminate as much debt as possible. Start by sending slightly larger amounts to clear off the larger loans. Smaller loans will get sorted out with small regular payments.

4. Take expert advice if necessary:
When it comes to Debt Management UK, credit counselling agencies are the best places to turn to. Most credit counseling agencies are non-profit companies. Of course, there are fees involved. The idea is that you write one monthly payment to the agency, and they in turn distribute that money to your creditors. Credit counseling agencies are used to dealing with people with bad credit or poor credit, and can help you create a custom debt management plan (DMP) too. They can suggest money lenders that might be more willing to make a loan to someone with a lower credit rating.

When in a grave financial situation, never hesitate to consider Debt Management UK. If you don’t or if debt management UK too, fails to help you, then you will have to file for bankruptcy. Bankruptcy frees the borrower from all his debt so that he could start afresh. However, it leaves a bad impression on the credit score and the borrower will find it very difficult to obtain a fresh loan for many years.

Debt Management UK may be able to lower your monthly payments by 30-50%, stop the late fees and over limit charges, improve you overall credit and put an end to life full of debt. Get the help you need through Debt Management UK today. You will walk through the process and will be on your way to being debt free.

Debt Management gives the comfort of a debt free life

Posted by | Posted in Debt Management | Posted on 17-07-2009

Everyone borrows money from the financial market at one or the other time to meet some urgent needs. But, at that time we don’t realise that taking various debts from different lenders may become a burden one day. If you too are facing the same circumstances then debt management can prove to be the best solution to all your worries.

Debt management can be defined as an informal process of negotiations with the creditor to obtain a reduction in the interest rate levied or to reduce contractual repayment. The negotiation process involves giving proof to the creditors that the debtor has insufficient funds to meet all the debt obligations.

Debt management is a fair and growing service in the UK. Debt problems usually occur due to circumstances which are beyond a person’s control. Debt management not only helps in reducing a borrower’s monthly payment but aims at eliminating all his debts. Borrowers get the benefit to consolidate their debts that are as low £3000 to a maximum of £250,000. Some lenders may even help in eliminating a higher amount of borrower’s debt.

Debt management is open to all. Good credit people, bad credit people or people with bankruptcy, CCJs or bankruptcy. Debt management by managing debts of a debtor can help in improving his credit score by making him accountable to a single low monthly payment.

There are various tools available for debt management. Debt management on a smaller scale is known as debt counselling. The idea is to offer knowledge to the individuals. It involves various debt management techniques-

.Expenditure should be restricted proportionately to the income

.In case a debt has incurred, proper arrangements must be made for its repayment

Another important tool for debt management is debt consolidation loans. The loan provider helps in the settlement of debts. This loan helps in consolidating the existing debts of borrower. It aims to make the repayments affordable by lowering the interest rates.

Borrowers can make efficient use of the expertise of the debt management agencies which they have gained through years of work in this field. Debt management representatives working with debt management agencies give borrower’s the power to get out of debt. They negotiate with the creditors on behalf of the borrower.

Debt management plans are formulated by the debt management representatives or consultants. It can help a debtor to repay the debts at an amount that is affordable. Debt management plan consolidates all the unsecured debts of an individual into a single monthly repayment which is then paid to the creditors on a pro rata basis over an agreed period of time often 4 years or more by the agency which is managing your debts. Trained debt management consultants calculate this amount in assistance with the debtor by thoroughly reviewing his financial position.

You need to stay aware of the fact that as every coin has too faces. There is one more aspect of debt management you need to look at. Most of the debt managers charge hefty fee for this service. But there are debt managers who can do this job for you at a low fee or for free. So you need to keep your eyes and ears open before you decide to opt for debt management.

There are various debt management agencies in the finance market. Look for debt managers who can offer you this service at low cost with maximum benefits. Borrowers can search for debt managing agencies online too. Internet can help you access infinite number of debt management agencies from your home or office computer. The online process saves your time and efforts.

Debt management can make you debt free. But you need to maintain discipline in your life so that you may not fall into the same debt trap in future.