Being in debt is one of life’s biggest pressures, and it can be difficult for anyone to deal with. Fortunately, there are solutions and companies out there that want to help if the problem has become very serious, and you’re struggling to pay back the money you owe. It’s much better to get help; ignoring the problem won’t make it go away.
Harassment from your creditors and even debt collection agencies can be one of the most stressful aspects of being in debt. It can be letters, emails, phone calls or even home visits. One of the main aims of helpful debt management companies is to end this constant stream, to the point that creditors will only contact you when absolutely necessary. This is one of the first things that will happen when you decide to consolidate your debt, and it gives you some essential breathing space to begin resolving the problem.
Using a debt management company is actually quite simple, and it’s easy to get started. You supply them with all the information that they need, and they’ll work with you to decide how much you can afford to pay to whoever you owe. They then inform your creditors that they’ll be working for you, and will give them offers as to the amount you can pay back. In many cases, debt management companies can reduce the interest on your outstanding debt. You then pay the debt management company a set amount every month in order to settle the debt, and they deal with creditors. A fee for the service will be included in this payment, and there may be initial charges too.
There are some important considerations to make when you decide to use the services of a debt management company. The first is that defaulting upon any of your original credit agreements can have a negative effect on your credit rating. This will often happen when using a debt management. Fortunately, you will be working on getting out of debt, not buying credit products, so you aren’t likely to have a credit report in the near future. It’s also far better for your future credit profile than getting an IVA or declaring bankruptcy.
The second important point is that debt management is generally an informal agreement, which is to say there is no set contract between you and the management company. Creditors are by no means guaranteed to accept any offers from debt management companies, nor are they required to stop contacting you. In most cases however, the company helping you will be successful in reducing overall payments.
Fresh Start UK Debt Management Limited (http://www.freshstartltd.co.uk) is a dedicated debt management company which places excellent service at the top of their agenda. Not only this, but they offer some extra services which many other companies do not; if you’re self-employed or have crown debts, then they might be the ideal company for you to use.
Remember, you don’t have to suffer in silence; get help and get out of debt.