Are you having a tough time with money? Do you find it hard to say no to new loans and credit card offers? You may have ended in a debt spiral but there are options available to you for getting out of your debt despair. A debt management service is just one way of getting debt help and you could end up with a perfect solution to ease your money worries. A debt management service may offer you an expert consultation to work out what is the best debt plan for your individual case. They may also negotiate a deal with your creditors, a great relief for people who have come to live in fear of letters, phone calls and visits from creditors. Use the chart below to compare the main features of each debt service. Always read the terms and conditions carefully before you apply.
If your debts are out of control then a debt management plan could help you
What is debt management?
If your debts are mounting and it seems like your creditors are closing in on you it might be time to seek external help to try and resolve these credit issues. A debt management plan is designed specifically to help you pay off your debts in an orderly fashion and to avoid you losing any assets which debts may have been secured against such as your home.
How will a debt management solve debt issues
The idea of a debt management plan is to come up with a solution which will suit your creditors and allow you to pay back the money which you owe. The debt management company can negotiate with your creditors on your behalf to try and negotiate new affordable instalments. They will also try to consolidate your debts into one monthly payment to make things easier to organise.
What are the disadvantages of a debt management plan?
It is important to note that while the debt management company can help you with your outstanding debts, taking on a debt management plan is likely to affect your credit rating negatively. It may also be overall more expensive to use a debt management plan than to organise paying off the debts yourself.
What you need to apply for a debt management plan
In order to qualify for a debt management plan you will need to have multiple debts. You will also need to provide your identification number and financial details.
Know what you are applying for
Before you sign any contract for your debt management plan it is worth seeking financial advice. These contracts are serious and it is important for you to understand exactly what you are undertaking. Read all terms and conditions in detail and compare different companies to see who can offer you the best deal.
How to compare debt management companies?
Most debt management firms will offer you a variety of solutions based on your individual case. These could include an informal debt agreement, consolidation loan or an individual debt management plan. Debt management companies will offer you guidance and negotiate with your creditors on your behalf so you are able to make monthly affordable payments. Always ensure that you check the fees and charges associated with debt management companies. Each company will have different terms and conditions which you should ensure you make yourself aware of.
Remember that a debt management plan is not a formal legally binding agreement like an IVA or bankruptcy, so there is always the chance your creditors can change their mind and decide they are not happy to continue with the plan. If you are in any doubt then you should seek independent financial advice.
13 May 2013
Life without debts might still be far away, but a debt management plan can be a beginning. A debt management plan cannot pay off money owed - but when looking for a life without debts, and when it has become too difficult to manage one's debts, help is there!
25 April 2012 16:00
One of the steps you can take to overcome your debts is taking out a debt consolidation loan. A debt consolidation loan brings together all your expensive debts into one more affordable and manageable loan, reducing your monthly cost.
07 February 2012
Which Way to Pay
At one time or other thousands of people across New Zealand will go into debt. If you are struggling to cope with mounting debts you can get the help you need to get back on track with a debt management plan.
08 August 2011
Which Way to Pay
If you are struggling with multiple payments, you may want to consider bringing all your debts together into one manageable monthly fee. A consolidation loan enables you to do this with the added benefit of knowing exactly how much your debt will cost per month allowing you to budget your expenses more effectively.