For many people across the UK, debt has become a huge burden, particularly over recent years where households have had to cope with the increasingly difficult economic climate with many UK residents now turning to debt management as a form of debt relief. The huge personal debt mountain in the UK reflects the problems that people are now experiencing with their personal debt levels and for many their debt problems have reached a point where they can no longer cope and require debt help and debt advice from specialists.
Anyone that is experiencing difficulties when it comes to keeping on top of debts payments is strongly urged to get debt advice or take steps to resolve the situation before things get any worse. These problems can arise for one of a range of reasons. Many people that are now struggling with their debts did not have a problem when they first took out the finance. However, factors such as unemployment, pay freezes, government cutbacks, and soaring living costs have all taken their toll on the average household budget, and suddenly repaying debt has become a lot more difficult than it was in the past.
With debt issues become more and more common, access to debt related advice has become easier and easier. The high level of demand for advice relating to dealing with debt means that you will now be able to access a number of charities and debt management agencies that are equipped to offer advice, assistance, and solutions for those experiencing problems.
Getting debt help and advice as early as possible is strongly advised so that your problems do not spiral out of control. Debt management companies and charities can offer a range of debt advice and solutions that can provide debt relief and help you to get out of debt more quickly. By taking advice you can reduce the stress that you are experiencing over your debts, stop debt collectors who may be hassling you, avoid court action, and even become debt free more quickly.
Debt Management Companies
Debt management plans are also an option that may be considered, where the advisor will speak to your creditors and set up a plan where you make one lower monthly payment to cover all of your debt repayments. Your creditors will be paid a portion of your monthly payment on a pro-rata basis by the debt management company.
Debt Management Plan
These debt management companies will arrange your debt management plan and will deal directly with your creditors, relieving you from the stress of those debt collection calls. They will also negotiate directly with them to try and cut the amount that you owe and build your debt management plan, one that you can keep up payments with while still living a decent standard of life.
Debt consolidation to reduce your debt problems
There are a number of possible solutions that can help to reduce your debt related stress and worries. Some solutions you can implement yourself without the need to speak to a debt agency or charity, such as debt consolidation. This is where you take out a larger loan to cover a lot of smaller debts such as credit card debt, loans, and other unsecured debts.
Debt Consolidation Loan Drawbacks
Of course, you need to have pretty decent credit in order to get a debt consolidation loan, so this may not be the ideal solution for everyone. Also, with debt consolidation you are merely increasing the size of your overall debt over a longer period. This may seem attractive to some but using debt consolidation will actually cost you more money over the length of the loan. Here are Nicongrp.co.uk, we can offer you IVA services and a fully personalised debt management plan.
Other solutions can include things such as Debt Relief Orders, Individual Voluntary Arrangements, debt management and even bankruptcy, which may all be considered for severe debt problems where there is no other option available. Debt charities and advisors are able to offer more information on these options, can determine which one is going to best suit you based on your needs and circumstances, and can get the ball rolling for you.
Why take action early on your debt problems?
It can be difficult to see the light at the end of the tunnel when you have serious debt problems that are getting worse and worse as time goes on. If you simply bury your head in the sand and don’t take advantage of the available debt solutions, hoping that it will go away you could find yourself facing serious issues. You could end up with County Court Judgments, default notices, very bad credit, and you could find that your debts are getting bigger because of the range of fees and charges that may be applied. Taking action as early as possible by setting up your debt management plan will help you to avoid many of these problems as well as reducing the severe stress that you are most likely experiencing as a result of your debt.