It is difficult when in debt to weed out the unimportant goals. Focusing on controlling the problem is key to achieving the best outcome.
Allot of people get hung up on gaining an official acceptance while in a debt management plan. While this is a great goal to go for it is not the be-all and end-all. The main aim should be firstly to control the balance so it does not get any bigger.
As long as the interest and charges have been stopped does an official acceptance of any lowered repayment matter? I say not.
It is often necessary to alter your way of thinking when dealing with banks and debts, a harder approach to the actual figures and thinking about how you force banks to do things rather than them forcing you to do things. The banks have been built up as an authority figure in the public's mind but remember they are just a business selling a product.
The public is protected by the Law (generally to the detriment of the Banks) so when a Bank next asks you to do something, think whether you want to do that thing. If you are unsure, get some advice. There is lots of free advice out there, Debtaid Ltd (www.debtaid.ltd.uk) can provide this and there are many more arrears of advice that can and should be looked at.
Wednesday, 20 May 2009
Monday, 18 May 2009
Confusion? Take it one step at a time
Debt is a strange word, and it is not the first one that comes into peoples minds when money problems start. So what is the first word describing it?
I've been advising people on debts since 2000 and on first contact people usually ask where they can get a loan to cover the arrears and reduce the ongoing monthly repayments. At first glance this is the initial way to deal with a small deficit with repayments, there are very few who can make this work. The reason is that the affordability gap is usually wider than refinancing allows. See its started to get confusing already.
The first step is to get a bucket load of adivce, like a supermarket sweep. You will get a lot of stuff you may not need but the gem you find at the bottom of the trolley will be of great value! Start shifting through the advice you think is best and keep asking.. it should become obvious who is going to help you the most and which advice agency you like dealing with. Don't pay for any of this advice just keep asking lots of different sources. There are big ones, small ones, start ups and aged ones. Compare them all.
Where I work at Debtaid we work on the basis that if we give great advice people will keep using us. Debtaid Ltd give free advice and can even do a free debt management plan for you on the phone, no obligation. Ideal for comparing to all the other advice people should be shifting through! www.debtaid.ltd.uk
I've been advising people on debts since 2000 and on first contact people usually ask where they can get a loan to cover the arrears and reduce the ongoing monthly repayments. At first glance this is the initial way to deal with a small deficit with repayments, there are very few who can make this work. The reason is that the affordability gap is usually wider than refinancing allows. See its started to get confusing already.
The first step is to get a bucket load of adivce, like a supermarket sweep. You will get a lot of stuff you may not need but the gem you find at the bottom of the trolley will be of great value! Start shifting through the advice you think is best and keep asking.. it should become obvious who is going to help you the most and which advice agency you like dealing with. Don't pay for any of this advice just keep asking lots of different sources. There are big ones, small ones, start ups and aged ones. Compare them all.
Where I work at Debtaid we work on the basis that if we give great advice people will keep using us. Debtaid Ltd give free advice and can even do a free debt management plan for you on the phone, no obligation. Ideal for comparing to all the other advice people should be shifting through! www.debtaid.ltd.uk
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