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Struggling with debt?
16th September 2008
Its no secret that times are hard, inflation is rising, borrowing is getting harder and living costs are increasing so its little wonder many people are struggling with debts. With that in mind we thought we would put together a resource guide for those wanting possible solutions without borrowing money.
There are a few options available to people struggling with debt if they are unable to resolve issues themselves, the main choices for debt reconciliation would have to be wither debt management or IVA. A debt management plan is not as sever as an IVA and is what we will be focusing on here.
Debt management
There are a few articles on our site relating to debt management and specific debt management questions but we thought we would give a round up of the key benefits.
If you are struggling with debts you probably have too much month at the end of your money - there are two ways to rectify this - either increase your income or decrease your outgoings. Debt Management can help by decreasing you monthly creditor bills to ensure you have enough money to be able to maintain a reasonable standard of living, the way a debt management plan does this is by making allowances for your normal living expenditure and priority debts and any money left over is realistically what you can consistently pay to maintain your monthly creditor payments.
It should be noted that a debt management plan can not deal with secured debts (such as a mortgage or hire purchase agreements) as the lender has the right to repossess the items if the normal payments are not maintained so a debt management plan would look after unsecured debts such as unsecured loans, credit cards, catalogues, overdrafts and other forms of personal lending.
When you start a debt management plan you will work through your monthly income and your essential monthly living costs such as food, rent or mortgage payments, travel, clothing and utilities. By making allowances for the things we all need to live a debt management plan ensures you will at least have enough money each month to live on - whatever is left after allowing for living costs is what will be split around to your creditors.
If you feel you may benefit from a debt management plan simply fill in the form above and we will phone you back to discuss your needs and requirements in person.
