Debt management blog
Tips, help and information for people with all kinds of debt issues
If you fail to pay a debt that you`re expected to repay, you will `default` on that debt. This can be serious, but there are things you can do.
If you have a number of debts and you want to rearrange your finances, a debt consolidation loan could help.
One of the reasons people take out a debt consolidation loan is because it can make their debts more affordable - both on a month-to-month basis and over the course of the loan.
In the past, struggling borrowers with very low incomes have had few choices when it comes to tackling unmanageable debts. But last year`s introduction of Debt Relief Orders (DROs) has given more people access to the debt help they really need.
However, like any form of insolvency, you`ll only have access to a Debt Relief Order if you really need it.
Budgeting is one of the most important ways of maintaining a healthy bank balance. Learning to budget effectively can help you to ensure that you have enough money put aside for all your essential expenses each month, and this way you`ll know how much you can safely spend on other things.
How to set up a budget
The first step is to take a look at your income and your outgoings. You want to look at your actual take-home pay, so checking your bank statement is a good way to do this.
Most of us have been affected in one way or another by the recession - and despite economists` earlier predictions, we`re not out of it yet.
So it`s particularly important that you manage your finances well. An essential part of good financial management is learning to budget - and here`s our guide to putting together a budget of your own.
If you can`t afford to repay your debts as agreed and have fallen behind with the repayments, but you do have a reasonable amount to contribute as a lump sum (e.g. savings or an inheritance), you may be able to offer a `final settlement` to your lenders. This is the offer of a final payment that will settle your debt and stop them from pursuing you any further, as the remaining balance will be written off.
Most of us know that good money management is essential for a healthy bank balance - but how many of us actually practise it?
In today`s financial climate, good money management is more important than ever. With a few simple steps, you can help ensure that your finances run smoothly and minimise your risk of falling short towards the end of the month.
If you find yourself struggling with debt, it`s a good idea to get some professional debt help at the earliest possible opportunity. The sooner you act, the sooner you`ll be on your way to clearing your debts.
When should I get help with my debts?
In general, you should speak with an expert debt adviser at the first sign that you`re having trouble with your debts. If you`re having difficulty making one or more of your debt repayments - or even if it looks like you could struggle in a few months` time - you should seek debt advice as soon as you can.
Registered in England and Wales