How can debt management help you
- 1
The Citizens Advice Bureau website can provide useful information.online image by Leticia Wilson from Fotolia.com
Research as many non-profit debt counselling services as possible. Avoid commercial companies which offer "free help"; more often than not you do end up paying for their service at some stage. Genuine non-profit debt management counsellors are paid to help you, not make money out of you. Your local Citizens Advice Bureau is a good place to start (see Resources below). Enter your postcode into Money Advice Map (see Resources below) to find free independent financial advice centres in your locality. - 2
Make sure you have all the relevant information for the debt management counsellor.Paying Bills image by ne_fall_photos from Fotolia.com
Provide the debt management counsellor with all the information they need to help you. Make a detailed list of all your outstanding debts and collect all statements and final demands together. - 3
Debt management can help you get extra time to sort out your finances.old calendar image by Allyson Ricketts from Fotolia.com
Ask the debt management counsellor to inform collectors that you have sought help. This gives you breathing space of 30 days, due to an agreement between the government and Credit Services Association, the official body that represents debt collection agents. As long as you can prove you have sought professional help, debt collectors must not contact you for at least 30 days. This hopefully will give you time to sort out some of your debt problems. - 4
You will be advised to get rid of all credit cards as part of your debt management plan.Debt concept - cutting a credit card image by Sophia Winters from Fotolia.com
Go through your long term options with the debt management counsellor. They are experienced in dealing with even the most serious debt problems and will advise you on the best way forward. Depending on your particular circumstances, they will create a debt management plan to meet your needs. This may include helping you to negotiate lower rates of interest with your creditors, or pointing you towards an IVA (Individual Voluntary Arrangement), Debt Relief Order or even bankruptcy. They will help you to prioritise your debts to make sure the situation does not get any worse.
Source...