Don't Let Debt Run Your Life
A Clear Way To Removing Your Bad Credit and Debt
Unless you live in a rudimentary dwelling on a particularly remote island in North West Scotland and don't have easy access to a hole in the wall (the kind that you remove cash from, not where you bake your bread) then you are more than likely facing some form of debt. Many borrowers find themselves in this situation and have no idea how they can get out of it. Whatever the original reason for the loan the fact of the matter remains, you have to pay it back and there lies the rub Let me tell you it's no fun having arrears on loans as you end up paying double, triple, or even more for your purchased items due to very high interest rates. It will not only affect your finances but your credit record as well. So it's far better to clear away all the debts in a certain amount of time, usually with the help of debt management program or company.
What is Debt Managemen t?
Debt management is an informal process of negotiating with your creditors to make your repayments more manageable. This can involve the freezing or reduction of interest charges, the extension of repayment terms then make just one simple payment each month. Debt Management companies allow you to deal with all of your credit commitments in one affordable monthly payment. Once you can demonstrate you are facing financial difficulties, an agreement can be established with your creditors allowing your payments to be distributed for you. Then, when you have been established as a regular payer, a request can be made to freeze interest and charges. These informal arrangements, whilst not guaranteed, often prove a successful solution to debt problems and avoid the cost and stress of legal action.
In a Nutshell Debt Management Can:
Re-prioritise your finances. Replace many payments with one affordable monthly payment. Create a stable and regular debt payment Improve financial stability Improve your credit score Give you free advice Improve your peace of mind
Even if you have a history of bad credit such as CCJs, IVA, arrears, defaults etc there are real benefits to a debt management program. Making regular monthly payments on the amount borrowed will give you a chance to improve your credit rating. There are many agencies able to help with debt management and you will find a host of them online offering professional services as well as non-profit management companies providing debt solutions, education and counseling on low cost fees. The other benefit to using such an agency is their ability to deal with your creditors for you in a professional and courteous manner, saving any uncomfortable or potentially lively conversations you would rather avoid.
What Can You do To Help With Debt Recovery?
The above actions are a very positive step forward to debt recovery and peace of mind, but you can easily slip back into bad habits and find yourself back where you started, only it will be harder for you to take t he same steps as you have damaged your credit rating further by having arrears or defaulting on your monthly payments. Your job is to make the necessary sacrifices to maintain your repayments. I don't mean just having one Double Latte a day or skipping one or two premier home games. This is pulling in the belt time and there are many ways you can do this without feeling you have a non-existent lifestyle- don't forget it is only temporary.
You should start by making a" monthly bare essentials list" this would typically include: Mortgage or Rent, Food bills, Heating and utility bills, Telephone, Car / transportation, Loan or Card repayments. Don't forget Council tax or any other local authority charges.
Next shop and live more wisely. Don't go to the more expensive supermarkets for your weekly shop, you can find a lot of the home essentials in poundsaver shops on most high streets. Local free papers are great for finding many household objects secondhand. As well a s books your local Library can provide you with DVD's. There are lots of other great ways to make savings and you should take advantage of as many as you can - everything else leave out! When I say everything else I mean; No Double Latte's, No attending premier football games, No nights out, No unnecessary visits to the hairdressers, No Satellite or cable TV, No glossy magazines, No treats for the Pets etc.
This might sound like you have been transported back to the 19th Century but as I said before it's not permanent and will save you from a lot of stress and undue worry on a daily basis which is not productive to a healthy body and mind for you or those close to you. Resolving to make the cuts mentioned above will allow you to have an emergency fund which you can build up. This can take care of any unexpected financial outlays and allow you not to worry about using your Frequent Finance monthly repayments and thus deferring on your debt management program. With the aid of a debt management company and your efforts there should be a qui ck disposal of all your existing debts with relatively little discomfort.
Author: Mark O'Leary - Financial Broker And Marketing Expert for Frequent Finance [http://www.frequentfinance.co.uk] | 14-04-2008
Mark O'Leary is a Financial Broker and Marketing Expert and writes articles for various financial companies.
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