The following will be of interest to my U.K. readers. Obviously, it goes without saying, if you are facing large debts, dining out should be very low on your priority list.
Debt management is the art of organising your finances in a way that will make it easier for you to meet your obligations. Usually, the exact details are documented in a debt management plan, which is typically set up by a debt management company. While all of this sounds easy in theory, it is frequently anything but in practise. This is why we have created an easy-to-understand overview of everything relating to debt management for you.
When does debt management make sense?
– Debt management can make sense if you want to reduce your monthly outgoings and create a more workable payment schedule for your loans.
– Debt management is a practical solution if you are faced with bankruptcy. Rather than having to forfeit on your debts, you can instead restructure them and pay back the amount in your own time.
– Debt management can simply constitute an effective way of optimising your financial situation. In some cases, debt management can, for example, reduce the overall amount of money owed.
What does a debt management plan consist of?
– A debt management plan foremost consists of debt consolidation: All of your different loans are compiled into a single one with a lower monthly rate.
– A debt management plan also transfers the job of handling your finances to a debt management company, which will deal with all your creditors.
– The analysis established for setting up a debt management plan may also include detailed ideas and proposals to drive down your debt level and find alternatives to bankruptcy or alternative measures such as an IVA or DRO.
What are the advantages of a debt management plan?
– Since your finances are now handled by the debt management company, you can save yourself the hassle of dealing with your creditors.
– Your overall financial situation is made far more transparent by a debt management plan, allowing you to arrive at better calculations and estimations of your debts.
– A debt management plan, as mentioned above, can greatly improve your liquidity and act as a precautionary measure against insolvency.
How to find a good debt management company?
– A respectable debt management company will never claim to get you „debt-free in no time“or promise to reduce your overall debts.
– A good debt management company will work as a mediator between you and your creditors rather than pitting them against you.
– A good debt management company will not present you with a generic debt management plan, but take your personal situation into account.
– A professional debt management company will not charge you a fee exceeding the monetary benefits of the debt management plan it helped set up for you.
– A debt management company you can trust is member of DEMSA, an organisation promoting standards aimed at protecting the interests of borrowers and creditors alike.
Summing up, if a debt management plan sounds like the right step to you, contact one of the debt management companies in the UK meeting the criteria specified in the last paragraph.