Many callers to the free help with debt helpline are looking for a debt solution as they have overspent at Christmas. It is very easy to go overboard at Christmas and spend on items that you suddenly realise when the account is rendered, you cannot afford to pay for.
It may not be until January or February when the accounts first appear, that you understand that minimum payments cannot be made.
It can be quite a shock when this first happens, and it may be the case that those affected do not know where to turn. That is why we are building a presence on the internet, and free resource for those in need of help and advice.
Debt Management
We are very happy to explain what a debt management plan is, where it can be obtained and the effects of entering into an arrangement.
The debt management plan can be effected in a matter of days. It commences with a simple telephone interview which will determine the amount of income and expenditure and hence the available disposable income. It is this disposable income that will form the basis of the offer to the creditors.
The debt management company will inform creditors of the amount of debt held and the amount of disposable income. This results in an offer to each creditor based upon the level of debt. They are free to accept or reject the offer.
In current times, as long as an offer is reasonable nearly every creditor will be happy to accept what is proposed. This is because a creditor will be pleased to get a regular payment albeit less than they could expect monthly in accordance with the terms of their agreements.
It is a costly exercise for a creditor to have to chase a debtor for a payment each month. Therefore they are likely not only to accept what is on offer but also suspend interest and charges.
The debt management plan can be stopped at any time as it is an informal arrangement. By entering a debt management plan however, it will affect your credit rating and so you must be sure that you have a debt problem that needs attendance.
If you feel that you may benefit from a debt management plan please do not hesitate to contact us.
Information provided by Steve Thatcher of Help With Debt (UK) Limited and total debt solutions company.
For all further reading see http://www.helpwithdebtuk.com
For personal contact email sthatcher@helpwithdebtuk.com
For Steve's thoughts see http://steves-debt.blogspot.com
If you have any debt problem whatsoever either personal or corporate make Steve your first call all advice is free. Finally if in the UK and you need a friend to speak to call 01162171406
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