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Credit Counseling And Debt Management Guide

by on March 31, 2012

in Guides

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Resources For Debt Management Credit Counseling

When you need debt management, credit counseling can help. If you are in debt, it is important to resolve the issue, regardless of how much you owe. Some people find themselves continuously spending more than they earn. Others are able to pay their expenses most of the time, only falling behind occasionally.

Whether one of these situations sounds familiar or your finances fall somewhere in between, explore debt management. Credit counseling is one tool that effectively helps people with all types and levels of debt.

Residents of the UK are extremely fortunate to have several resources for free, impartial advice regarding debt issues. Support is available online, over the telephone, and in person. In a counseling session, experts skilled in debt management investigate the financial situation of the consumer and make personalized recommendations.

There is no charge to implement many of the informal solutions, while formal programs like Individual Voluntary Arrangements (IVAs) and bankruptcies have associated costs.

Much information is available online for consumers who are Internet savvy. Directgov, the website of the UK government, is a great place to start. An entire section of the site is devoted to money management and includes advice for individuals of all ages as well as businesses.

After reading through the information, anyone will feel more comfortable with the various programs and terms used in the debt management sector. Our site features much of this information, reinforcing the concepts introduced by the government.

Free telephone debt management credit counseling services are offered by the National Debtline, Consumer Credit Counseling Service, and Payplan. Residents of the UK can even access IVAs without upfront fees through Payplan, allowing them to establish this program without getting themselves further in debt.

Community Legal Advice offers telephone counseling to residents of Wales and England who qualify for legal aid and need help resolving debt issues or increasing income through tax credits or welfare benefits.  Our company provides telephone credit counseling services as well and representatives are available during evenings and on Saturdays, for your convenience.

In-person counseling is available from a local Citizens Advice Bureau within England, Scotland, Northern Ireland, or Wales. Shelter offers debt advice to residents of England and Wales and Advice NI has centers within Northern Ireland. The AdviceUK independent service center network is available for people residing in Scotland, England, and Wales.

Some local authorities provide free credit counseling and consumers can locate these online. UK residents who qualify for legal aid and are being threatened with legal action due to their debts can contact a local Law Center.

Identifying Which Debt Management Credit Counseling Solution Is Best

Consumers should review the different free resources for debt management advice. If things seem confusing, a quick call to us should clear things up. We offer a free debt assessment and free advice regarding debt management plans like debt negotiation, debt consolidation, IVAs, debt relief orders, and bankruptcies. We deal with UK customers with all levels of debt, providing both informal services and quotes and assistance regarding formal programs.

Anyone with financial issues should explore debt management. Credit counseling provided at no charge through reputable organizations can help people get back on track financially. Getting expert advice is the best way to address debt. There is no reason to pay for this guidance when it is available at no charge through established entities like ours.

Advice And Guidance Provided In Debt Management Credit Counseling Sessions

People who have never participated in credit counseling may be hesitant. The entire concept may sound scary and individuals seeking counseling for debt issues are already under extreme stress. Counseling sessions are actually very comfortable due to their confidential nature and the fact that consumers are not obligated to implement any of the recommended solutions.

In fact, some people participate in credit counseling when they do not have any arrears. They learn ways to keep themselves out of debt so they never require a debt management program.

During times when debt management counseling is needed, consumers learn how to establish and revise their budget and prioritize debts. Professionals review income and expenses and help consumers identify areas where costs can be reduced. When prioritizing debts, consumers learn to place high priority on debts with severe consequences for nonpayment. For example, falling behind on a mortgage payment or other loan secured by the home can cause the property to be repossessed, leaving the individual homeless.

Once debts are prioritized, the consumer and credit counselor have a better idea of where things stand. The debt professional can then recommend ways to handle these arrears. Consumers with limited debt may be able to negotiate more affordable repayment terms with creditors.

Others will need the help of a third party to establish an informal debt management plan or provide a debt consolidation loan. Our counselors are able to set these up for consumers who are interested.

Some consumers have higher levels of debt or expensive priority debts that must be paid. In this case, counselors may recommend a formal solution such as an IVA, which is one alternative to bankruptcy. Scottish residents have a related plan, called a Trust Deed, available to them.

As a last resort, bankruptcy is available to consumers who have no way to repay their debts. Counselors walk individuals through the bankruptcy process, putting them at ease.

Information To Gather Before Seeking Debt Management Credit Counseling

Since consumers will be asked several questions by the credit counselor, they should gather some information before making contact. Paystubs and credit card, loan, and mortgage statements as well as documents regarding other outstanding debts should be on hand. If a budget has already been created, a copy should be available. Consumers on benefits should gather the relevant documents.

People should never be nervous when seeking debt management credit counseling. Counselors are aware of the embarrassment and frustration that many people experience when in debt. These professionals do what they can to make the situation less uncomfortable. With their help, individuals can begin taking action to rid themselves of cumbersome debt.


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