Debt Management – Better Way to Get Rid Of Debts
wayne 53 Views
Debts are always a cause of worry. Everyone wants to be free of debts but life is mostly unpredictable and you may anytime come across a situation where your debts instead of getting eliminated, starts soaring. In such awkward situations, debt management comes into picture. In simple words it is a plan devised to repay […]
According to surveys, 92% of the monthly installment is paid as interest while only the remaining 8% goes towards the actual debt. This justifies the need of debt management. To live life “luxuriously”, many people spend “extravagantly” but latter finds very difficult to get rid of the debts. Here debt management plays a vital role.
Approaching a debt management company in the above mentioned situations is a wiser option than opting for debt consolidation. Debt management does not mean another loan rather the company will take a single fixed monthly installment and repay your existing loans. The company will study your income and inevitable expenses and then decide the monthly installment so that you live a normal life.
The debt management company can manage debts between £3000 and £250000. Normally the charge for adopting debt management plan is nil but sometimes the companies may charge you 15% to 17% of the monthly payment as a start up fee or monthly management fee. Financial Helpline, for example, only change you a set fee depending on how many credtors you have. The repayment period may vary from few months to years depending on the repaying capability of the customer.
Debt management has many advantages. The biggest advantage is that your debts do not increase as the charges and interests are usually fixed. The debt management company will deal with all your previous creditors, thus reinstating your peace of mind. The debt management plan does not comprise secured debt and such plans can’t be discontinued at your own will. The only disadvantage of such plans is that they are not legally binding, so the creditors might take action against you. But this situation can easily be dealt with.
Choosing a wrong loan is just like locking your doors for further financial development. A professional debt management company can help you to unlock new doors and open new possibilities, no matter how unique your situation is. To find IVA advice, bankruptcy and IVA advice, IVA advice debt, IVA advice look no further.
Other articles you might like;