People rarely feel more alone than when they are in debt. They believe that no one will understand their financial crisis, which leads to feelings of frustration, anger, and even hopelessness.
These individuals should realize that many organizations offer debt management help to residents of the UK.
Some of these services are free and not associated with a particular debt management solution.
Getting Informal Debt Management Help
Advice from an independent source is available face-to-face, online, and over the telephone. Consumers can select the option they are most comfortable with using. An expert will review the financial situation, provide advice, identify the best way to handle debts, and even establish an arrangement with creditors. It is important to note that not all organizations provide free advice or solutions. Consumers should ask about fees up front, inquiring about payment amount, method, and timing.
Debt management professionals can assist with informal and formal arrangements. An informal agreement involves a direct agreement between the debtor and creditors. The debtor agrees to make regular debt payments over a specified period and creditors agree to reduce the balance due. There is no cost involved in an informal arrangement and debtors can establish one on their own or have an organization do this, possibly for a fee.
Debt management companies offer plans to manage non-priority debts like bank loans, overdrafts, store card and credit card balances, catalog repayments, and money borrowed from friends or family. These organizations negotiate with creditors, reducing the overall payments the debtor must make.
One payment is made to the company each month and it distributes money to creditors. A debt management company may charge a fee to establish a debt management plan but the Consumer Credit Counseling Service does not.
A debt consolidation loan is another way to repay debts without going through the courts. A new loan is taken to repay existing debts. These debts are marked paid and the consumer is left with the responsibility of repaying the consolidation loan. Interested consumers should shop around with banks and building societies to find a low-interest, unsecured personal loan for this purpose.
Types Of Formal Debt Management Help
Formal ways of managing debt are more complex than informal programs. Consumers who are not familiar with these should seek professional guidance. Administration Orders, Debt Relief Orders, Informal Voluntary Arrangements, Fast-Track Voluntary Arrangements, and bankruptcy are some of the formal programs for UK debt management.
Most of these come at a cost and not everyone qualifies. In addition to restrictions regarding qualification, there are requirements an individual must adhere to while the plan is in effect.
Entering a formal program requires working with a professional authorized to handle the specific plan. Similarities between some plans make it difficult for some people to identify which option is best. Other consumers over or underestimate their level of debt and end up choosing the wrong solution. Debt management experts have in-depth knowledge of each program and can quickly identify the best one for every financial situation.
Where To Get Debt Management Help
Individuals have many resources when they are looking for free, independent advice for debt issues. There are more than 3,200 Citizens Advice Bureau locations in the UK and these help citizens resolve financial and other problems. Located in Northern Ireland, Scotland, Wales, and England, these establishments are staffed with experienced professionals who provide confidential advice. From 2010 through 2011, 2.1 million people sought advice from the CAB.
Consumer Credit Counseling Service offers confidential, free advice regarding debt including credit advice and personal budgeting. Residents of Scotland, England, and Wales can take advantage of free, confidential telephone assistance from professionals at the National Debtline. This organization also runs an online service called My Money Steps. Consumers can visit the site for free debt advice 24 hours per day.
The Debt Advice Foundation charity has a free telephone helpline designed to help UK consumers deal with debt. Debt Support Trust is another debt advice charity and this organization operates both over the telephone and online. Consumers can schedule an appointment at one of the more than 160 centers run by the national debt counseling charity Christians Against Poverty.
Residents of England or Wales can contact Community Legal Advice for debt-related guidance over the telephone.
Payplan offers UK residents free advice pertaining to several topics including budgeting and debt. The organization can help consumers establish a free debt management plan or an Individual Voluntary Arrangement that does not have an upfront fee.
The Business Debtline offers free telephone counseling for small businesses and self-employed individuals facing debt. Free debt counseling is also provided by some local authorities.
Debt management planning companies are professional businesses that offer advice on consolidating, managing, and repaying debt. They either employ or collaborate with debt management professionals who provide personalized advice and solutions.
These organizations deal with all types and levels of debt and they are able to tailor the solution to fit the situation.
Reasons To Seek Debt Management Help
By consulting with a professional, an individual in debt can quickly identify the best solution and get it underway. This prevents lenders from taking action that is more serious and keeps the financial situation from worsening. Under some programs, debt management experts deal directly with creditors, saving consumers time and eliminating frustration.
As a result of these negotiations, interest charges may cease while the debt is being repaid. A professional may also be able to significantly reduce the debt payments the consumer must make. At the same time, lenders will be satisfied because they will receive the payments to which they agreed.
All parties involved feel comfortable with the situation and are confident that debts will be repaid.
If you feel yourself slipping into financial trouble, get debt management help immediately. This simple action can prevent a small pile of debt from becoming an amount that cannot be repaid. With the advice and guidance provided by an expert, almost anyone can get out of debt more quickly and painlessly. Take the first step to financial independence today.