Tag Archives: repayment plan

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How to Reduce Credit Card Debt

The reason that many people find themselves stuck deep in debt is because they fail to admit that they have a problem. The first step towards being debt free is admitting that your debt is no longer manageable and a problem that needs help. Unfortunately, most people are egotistical and suffer in silence while there debt continues to rise. A lot of people in the UK find themselves with high credit card debt as a result of unchecked spending. A few admit the problem and seek for assistance from relevant institutions while others are adamant and suffer in silence.

If you find yourself steeped in credit card debt, the first thing you need to do is admit that it’s a problem and that you need professional help. There is no shame in admitting that you cannot effectively service your credit card debt and need professional help. Staying in denial just to save face will definitely make your situation worse; wondrously affect your credit score while at the same time affecting your personal life.

If you find yourself in huge credit card debt, the first course of action should be to admit to your credit card company and negotiate with them how you are going to settle your debt. Ordinarily, creditors impose or charge unnecessary penalties when you are unable to meet your financial obligations. To avert such a scenario and to stem your credit card from skyrocketing, the wise thing to do is to approach your creditor and prepare a plan on how you are going to make the repayment. However, since you are probably not versed in financial and debt negotiations, the best course of action would be to hire the services of a debt settlement company or professional.

Such professionals have intensive knowledge not to forget the prerequisite experience to negotiate a better debt settlement on your behalf. Such debt settlement companies are bound by law to work in your best interests while at the same time ensuring that the settlement they arrive at with your creditors reduces pressure on you and is good enough to enable you pay in a lump sum according to the agreement reached.

Another way you can effectively reduce your credit card debt is if you consolidate your debts. At times, you are dealing with a number of debts at a go and simply can’t find the right mix or don’t have the required finances to make payments for your debts as initially agreed. A debt consolidation company can consolidate all your debts including your credit card debt into one single debt. The greatest advantage is that instead of dealing with different creditors, you will be paying a certain amount of money to your debt consolidator every month depending on the new agreement you have with them.

This not only reduces stress for you but also gives you peace of mind as you won’t be dealing with calls and imposed penalties from different creditors but rather deal with one organization in repaying your debt. That notwithstanding, in order to stem high credit card debt, it’s advisable to use your credit card prudently!

debt-services

Debt Services – a look at what they are, the different types as well as the benefits

Mention the term debt and almost everyone can identify with it. It’s like its cast in stone that each and every single one of us must be embroiled in some kind of debt. Well, even for the few ones who claim not to have any kind of debt, the truth of the matter is that they can’t run away from public debt. In simple terms, a debt refers to money owed to another party. The person who borrows money is known as the debtor while the one who advances or offers debt services is known as the creditor. In the UK, banks, individual mortgage brokers as well as private mortgage companies are responsible for and are duly authorized to offer debt services.

When should you opt for debt services?

Ordinarily, people resort to apply for a loan when they seek to purchase or buy assets that are expensive and yet they do not have that kind of cash at the moment. This could be buying a home, piece of land, setting up a business venture, buying expensive jewellery, expanding business, buying raw materials, buying construction materials and so on and so forth. When you seek to purchase or finance any of the aforementioned yet you do not have the required cash at hand, the logical thing to do would be to opt for debt services. While going for debt services can be quite a relief and the best option when you don’t have cash, unchecked expenses could make repayment quite cumbersome hence the need to exercise caution with how you spend the money advanced to you.

The different types of debt services

The kind of debt advanced to you by institutions offering debt services is usually informed by the needs of the person applying. While it’s easy to get overwhelmed and use the money advanced to you inappropriately, remember that steep debts can affect not only your finances but also your personal life. With that said, some of the services offered by debt management companies/banks include:

  • Debt deduction services
  • Credit repair
  • Debt management solutions
  • Debt agreements
  • Consolidation loans
  • Bankruptcy

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When should you enlist the services of a debt management company?

Well, let’s face it. Managing debt requires discipline and this is something that most of us lack when it comes to finances. If you find yourself in financial troubles and unable to get out of debt, the logical thing to do would be to enlist the services of a debt management company. Inability to repay loans can be quite stressful and affect every aspect of your life. As such, hiring a debt management company will not only relieve stress but also ensure that they work out a good repayment plan for you as well as ensure that you are on top of your finances.

Benefits of debt services

When seeking for cash to invest in a business or buy property, taking out a loan is the most effective option. However, inability to repay the loan as agreed and in time could put you in serious financial problems. If you find yourself buried in deep debt and unable to climb your way out of it, seeking for debt services is the logical thing to do. The number one benefit is the fact that debt reduction companies will draw up for you a repayment plan that will ease some pressure from you. Secondly, they can also negotiate with your lenders/creditors for new repayment conditions and terms as well as take over management of your debt as well as distribution.