In some cases, they key to getting out of debt effectively is simply managing it properly.
The first and most important rule of debt management is that you should never ignore the problem.
Your lenders will soon notice if you have been missing payments, and the consequences can often be serious.
Instead, at the first sign of problems with repaying your debts, you should contact your lenders to explain your situation and discuss your options.
Lenders will appreciate the fact that you have shown you are prepared to address the problem, and it may be possible to negotiate reduced payments towards your debts or a temporary payment holiday so that you can get your finances back on track.
If you can't come to a satisfactory agreement with your lenders on your own, then it might be a good idea to speak to a debt adviser about a professional Debt Management Plan.
What is a Debt Management Plan? In short, a debt management plan is any informal agreement between you and your creditors with regards to how you intend to repay your debts.
Of course, this means that if your lenders had accepted your offer of reduced monthly payments, you would have entered into a debt management plan of sorts -- but if those negotiations fail, or if you find negotiating with creditors alone a little daunting, you could benefit from the experience of a professional debt management company, who will have dealt with many more people in your situation.
When negotiating with your creditors, a debt management company will be able to communicate the reasons why a debt management plan would benefit them as well as you.
There will often be an existing professional relationship between the debt management company and your creditors - the chances are that they will have dealt with each other on similar cases in the past - and this could improve your overall chances of getting favourable terms on your debt management plan.
Should I consider any other debt solutions? Yes, and that's another advantage of dealing with a professional debt management company -- they should assess your situation to help establish whether another debt solution, such as a debt consolidation loan or an IVA (Individual Voluntary Arrangement) might be more suitable for your circumstances.
For example, if repaying your full debts within a reasonable time period seems unrealistic, then a debt management plan may not be the most appropriate solution.
If you're unsure, speak to a debt adviser and let them help you establish the best debt solution for your needs.
The first and most important rule of debt management is that you should never ignore the problem.
Your lenders will soon notice if you have been missing payments, and the consequences can often be serious.
Instead, at the first sign of problems with repaying your debts, you should contact your lenders to explain your situation and discuss your options.
Lenders will appreciate the fact that you have shown you are prepared to address the problem, and it may be possible to negotiate reduced payments towards your debts or a temporary payment holiday so that you can get your finances back on track.
If you can't come to a satisfactory agreement with your lenders on your own, then it might be a good idea to speak to a debt adviser about a professional Debt Management Plan.
What is a Debt Management Plan? In short, a debt management plan is any informal agreement between you and your creditors with regards to how you intend to repay your debts.
Of course, this means that if your lenders had accepted your offer of reduced monthly payments, you would have entered into a debt management plan of sorts -- but if those negotiations fail, or if you find negotiating with creditors alone a little daunting, you could benefit from the experience of a professional debt management company, who will have dealt with many more people in your situation.
When negotiating with your creditors, a debt management company will be able to communicate the reasons why a debt management plan would benefit them as well as you.
There will often be an existing professional relationship between the debt management company and your creditors - the chances are that they will have dealt with each other on similar cases in the past - and this could improve your overall chances of getting favourable terms on your debt management plan.
Should I consider any other debt solutions? Yes, and that's another advantage of dealing with a professional debt management company -- they should assess your situation to help establish whether another debt solution, such as a debt consolidation loan or an IVA (Individual Voluntary Arrangement) might be more suitable for your circumstances.
For example, if repaying your full debts within a reasonable time period seems unrealistic, then a debt management plan may not be the most appropriate solution.
If you're unsure, speak to a debt adviser and let them help you establish the best debt solution for your needs.