Get me out of Debt

MANAGING YOUR DEBT

How do I manage my debts?

Are you asking get me out of debt? Then we can help. There are a growing number of debt management cases at this hard time so you are not alone.  Debt management companies can help. The first thing you should do is deal with the problem not ignore it.  Just because you ignore it does not mean it disappears. Debt management companies can offer help and advice for you. Follow these simple steps to see if this is the right avenue for you:

What is your total monthly expenditure for your debts?

Gather all your credit bills and calculate the total monthly amount.  If you have any problems with this contact the bank/building society for help. 

What is your total monthly utility expenditure excluding credits?

This would be your household bills.  Don't forget to include gas, electric, TV, phones, council tax, food, travelling expenses, clothing allowance.

What is your total monthly income?

Include wages, tax credits, child benefit (if applicable) and any other income you may receive.

What is the total monthly surplus amount?

Deduct the total monthly expenditure excluding debts from your total monthly income.  The figure remaining is the figure you want to work with.  Does this figure cover your total monthly debt expenditure? If not, then there are a number of options you can do now.

The next step

The first port of call would be to contact the creditors (the banks/building societies or HP companies you owe money to) and speak to the department that would deal with customers that are struggling to meet their payments. They can offer advice or may even freeze the interest to help you get back on track.  The companies are not always helpful.  They are there to retrieve as much of the debt as possible and may not be as forthcoming as you may like.  Don't worry, you cannot pay money you do not have. However, contact with these companies are imperative, it shows you are willing to solve your money issues.

What is best for you?

There are a number of ways to deal with your money problems depending on your circumstances and your financial situation. Debt management companies are a good option as they organise your debts into priority and contact all your creditors on your behalf.

Find out if debt management is right for you

Debt Management    

Debt management companies will devise a management plan that can be used for unsecured debt. It is suitable for people who do not have a huge amount of surplus disposable income and do not have a high level of debt (normally under £15,000). 

A debt management company can negotiate reductions in your payments to your creditors. You will make one affordable payment each month to the company, which they will distribute to your creditors for you. They will also negotiate to try to reduce or freeze any interest or other charges on your accounts.

The great thing about this option is that it can be amended or cancelled at any time.  It is not a legally binding arrangement and has not been authorised by the court.  Please be aware, any arrangements made will affect your ability to obtain further credit.  This is depending on how much is owed and the percentage of payments being made to the creditors. Some companies will still lend to struggling customers but at a much higher rate, which is not the answer to anyone that is struggling with their debt.

 If you owe more than £5000 and are a UK resident click here for help

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER DEBT SECURED ON IT