How to Get Out Of Debt

Being in debt is one of life’s biggest pressures, and it can be difficult for anyone to deal with. Fortunately, there are solutions and companies out there that want to help if the problem has become very serious, and you’re struggling to pay back the money you owe. It’s much better to get help; ignoring the problem won’t make it go away.

Harassment from your creditors and even debt collection agencies can be one of the most stressful aspects of being in debt. It can be letters, emails, phone calls or even home visits. One of the main aims of helpful debt management companies is to end this constant stream, to the point that creditors will only contact you when absolutely necessary. This is one of the first things that will happen when you decide to consolidate your debt, and it gives you some essential breathing space to begin resolving the problem.

Using a debt management company is actually quite simple, and it’s easy to get started. You supply them with all the information that they need, and they’ll work with you to decide how much you can afford to pay to whoever you owe. They then inform your creditors that they’ll be working for you, and will give them offers as to the amount you can pay back. In many cases, debt management companies can reduce the interest on your outstanding debt. You then pay the debt management company a set amount every month in order to settle the debt, and they deal with creditors. A fee for the service will be included in this payment, and there may be initial charges too.

There are some important considerations to make when you decide to use the services of a debt management company. The first is that defaulting upon any of your original credit agreements can have a negative effect on your credit rating. This will often happen when using a debt management. Fortunately, you will be working on getting out of debt, not buying credit products, so you aren’t likely to have a credit report in the near future. It’s also far better for your future credit profile than getting an IVA or declaring bankruptcy.

The second important point is that debt management is generally an informal agreement, which is to say there is no set contract between you and the management company. Creditors are by no means guaranteed to accept any offers from debt management companies, nor are they required to stop contacting you. In most cases however, the company helping you will be successful in reducing overall payments.

Fresh Start UK Debt Management Limited (http://www.freshstartltd.co.uk) is a dedicated debt management company which places excellent service at the top of their agenda. Not only this, but they offer some extra services which many other companies do not; if you’re self-employed or have crown debts, then they might be the ideal company for you to use.

Remember, you don’t have to suffer in silence; get help and get out of debt.

Where will you be next year?

It’s hard to predict the future, but the past is already set in stone – there for us to review whenever we want to. When you look back, it’s easy to see how your decisions worked out: you can see which ones you regret, which ones really paid off and which ones didn’t really make much of a difference.

With that in mind, says a press release from financial solutions company Think Money, a thorough review of the last 12 months can be an excellent planning tool when it comes to figuring out your financial approach for 2012.

There are many ways to do that. Some people use budget planners; others make a point of keeping receipts and invoices; still others take a ‘combination’ approach to reviewing their finances.

However you choose to look back at 2011’s financial decisions, the important thing is that you learn from them. If you see any indications that you could have handled your finances better last year, how can you apply that understanding to this year? How can you make sure you learn from any mistakes you’ve made, rather than running the risk of repeating them?

Turning to debt problems specifically, the press release stresses the importance of taking the right approach to budgeting and debt management. One thing that can help here is getting some professional debt advice. A debt adviser can help you go over your finances and suggest ways of tackling any issues you’re facing – and the sooner you face up to those issues and find out what guidance a professional can offer you, the less time your problems should have to turn into something worse.

Finally, some generic advice. Whatever situation someone’s in, setting up direct debits can be a good way to make sure payments are made on time, avoiding the late payment charges and possible damage to their credit rating which could otherwise ensue.

As for people who feel they’re comfortably in control of their finances, it helps to bear in mind that no-one knows what the future will bring. You may have spare money on a monthly basis today, but that could change, however unappealing that thought may be. One tried-and-tested way of preparing for the future is to put money aside whenever possible, creating a ‘safety net’ that could make all the difference if your finances take a turn for the worse further down the line.