Debt management blog
Tips, help and information for people with all kinds of debt issues
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.
A debt management plan can be a big help if you find yourself struggling with debt repayments that you can`t afford.
However, like any debt solution, debt management plans have their potential downsides, and you should be sure that it`s the right option for you before you make a decision.
One of the biggest advantages of taking out a debt consolidation loan to manage your debts is that it can enable you to reduce your monthly outgoings.
However, like any debt solution, debt consolidation comes with its downsides too, and you should always get advice from an expert before you go ahead.
Rent arrears can be one of the most worrying kinds of debt - after all, your home may be at stake.
Catching up on rent arrears can be difficult, because you`ll always have this month`s rent to think about, too - as well as payments to your other financial commitments, including any unsecured debts you have. If you`re struggling, there are a number of debt solutions that could help.
If your debts have become unmanageable, there are several debt solutions that could help. One is a debt management plan - a new repayment arrangement with your lenders that can enable you to repay your debts at a pace you can manage.
What is a debt management plan?
A debt management plan is an informal agreement with your lenders in which you`ll make lower monthly payments towards your debts, based on how much you can realistically afford, over a longer period of time.
Because they typically carry a high interest rate, credit card debts can be particularly worrying if you`re struggling to meet your debt repayments.
It`s been estimated that the average credit card rate is currently around 18% - much higher than average interest rates on some other forms of debt, such as personal loans.
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