When your mounting debt problem begins to get the better of you and the monthly repayments start to spiral out of control, you know that it’s time to seek out a suitable debt solution. Of course, since everyone faces different debt problems, brought on by personal financial circumstances, there can be no definitive answer as to whether one debt solution is better than the other. There are certain constant factors; the sooner you get debt help, the better and there is no quick-fix debt solution. So, regardless of your personal debt problem, you must face up to it and tackle it head on.
There are a range of debt solutions on the market in the UK and each can be tailored to suit your financial circumstances. If you’re feeling the pressure of mounting debt, complete with a strained monthly budget and ongoing creditor harassment, your choice is essentially between quickly reducing the total debt amount and reducing the monthly repayment amount. You can negotiate with your creditors to reach a settlement or draw up a debt management plan to help you service your outstanding debt. Here are some key points on debt settlement and debt management from Debtsolver.
· Debt Management, unlikeDebt Settlement,is a relatively informal debt solution between you and your creditors. Reaching an agreement with your creditors about a debt management plan allows you to make a single reduced monthly payment which is divided amongst your creditors.
· Your debt management company will look closely at your financial situation, taking your monthly outgoings, interest rates and minimum monthly repayment amounts into account. They will then negotiate with your creditors to lower your interest rates, freeze charges and reduce the monthly payment.
· If you take your total monthly income, subtract your living expenses and find you have money left over, then debt settlement could be a suitable debt solution for you.
· Shop around for a debt settlement deal and get specialist debt advice before you sign up to anything. Compare the services they offer and favour companies with a bit of heritage and credibility.
· Debt settlement, as with many other debt solutions, can damage your credit rating but obviously, if you are facing mounting debt problems, your credit rating will probably not be great anyway. To find out more about these factors, it’s important to get specialist debt advice.