How to Choose the Right Debt Management Plan |
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By: Dipika Patel Posted: 2010-06-13 06:47:48 |
| A debt management plan can be an effective way for you to get you finances back on track if you can no longer afford to meet your credit commitments.Such a plan will allow you to start actually paying off your debts without entering into a formal agreement, such as an individual voluntary arrangement.It will enable you to make an affordable single monthly payment to a debt management plan provider, which will then distribute the money to your creditors.The provider will also undertake the work involved in setting up the plan, including negotiating with creditors to persuade them to accept reduced payments for a fixed period and to either cut or freeze interest charges.Although such plans are useful for many people struggling to cope with their financial position, they are not suitable for everyone, so you should begin by taking some debt management advice before making a choice about how to proceed.The expert will start by helping you to calculate the total value of your unsecured debts and how much you can afford to repay each month.If the sum owed is in excess of £5,000 and you can afford to make a monthly payment of more than £100, a debt management plan could be the right option.The next step is to find a good provider to begin the process of negotiating with your creditors.You should shop around for debt management plans in the same way you would with any financial product.In addition to looking at the deal, consider factors such as whether or not the provider discussed a range of solutions to your financial problems, did they explain about the start-up costs clearly and were they able to give you a firm idea of what would happen if you are unable to make the repayments.This will allow you to make a judgement about how professional the provider is and whether you are happy for the organisation to be working with creditors on your behalf.Once you are satisfied with your choice of provider, the debt management plan can usually be set up within a few days, helping to give you peace of mind and setting you on the road to a healthier financial future.If you're looking for debt management advice then Debt Options can help you find the right solution to your debt problems. Our team have over 11 years' experience assisting people with serious debt problems and have helped thousands of people find the best debt management strategies. |
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