Hi. Welcome to the first in a series of articles written to help you sort out your debts. This will cover the groundwork involved in getting started, and set the scene for what's to follow. It's vital that you pick the best solution, as incorrect ones could still cost you thousands of pounds even if they do little or nothing to help you. This series of articles will provide free and clear information to help point you in the right direction.
A major factor in determining what direction to take is the size of the initial problem. This means writing down every debt you have, including monthly payment and outstanding balance. Be brutally honest, and don't be tempted to leave anything out or it won't work. This list then needs to be split into secured and unsecured debts. Secured debts include mortgage, secured loans, HP secured on vehicles, and any other loan secured on physical property. These have to be paid at the contractual rate, or negotiated separately, or you ri sk losing the property they are secured on. There is currently help available for mortgages in parts of the UK, so if you're struggling contact your lender sooner rather than later.
Look at the list of your unsecured debts. This will be things like personal loans and credit cards, and other personal debts. At this stage the total outstanding will possibly horrify you, and the monthly payments will be more than you can afford. This is what we're going to sort out, so let's see what you can afford to pay each month.
On a piece of paper write down the net income you have each month. Include every source, such as tax credits, but don't include occasional income such as an annual bonus. Opposite this write down every monthly expense. You need to include everything you pay out, but bear in mind that your creditors may question anything they regard as a luxury such as gym membership or a pet horse.
Deduct expenditure from income, and the amount you have left is wh at you will pay each month to your creditors. The amount each receive s will vary dependant on what they're owed, although it's not a bad idea to make the minimum payment £5. Any less than that and it almost seems not worth bothering with.
Further Masterclasses will cover the next steps, as well as alternatives to managing your own debts in this way, but hopefully what you've read will get you started. If you can't wait to get going there's more help available on the internet.
For example, go to [http://silicondiamond.com/page3.html] and see what they offer. It's a toolkit designed to take the mystery out of debt management.
This has been put together by 2 guys qualified as financial advisers, who between them have a number of years experience helping people with debt problems. They recognise that many people have the ability to manage their own debts if they're given a little help to start with. Think about it for a moment. If circumstances hadn't changed you'd have continued making monthly payments to your creditors yourself. This would indicate that you're capable of doing the same again. All you need is a little initial help in setting it up with your creditors.
Go to [http://silicondiamond.com/page3.html] and for less than the cost of one month's debt management fees that help could be yours. No more monthly fees, no tie-ins, and your debts repaid years earlier. It's got to be worth a look.
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