Struggling with debt? Falling behind on your payments? Maybe it’s time to consider a debt management programme. Finding the right debt management company could help you solve your debt problems and save you from running into future debt and bankruptcy problems.
What does a debt management programme do?
A good debt management programme can help you reduce your interest rates, or cut your monthly repayments, saving you much needed cash every month. A repayment plan is worked out with your creditor – one which suits your budget.
When you first enter into a debt management plan your debt counsellors will sit down and assess your personal debt levels and how much available income you have. They may also negotiate a repayment plan with your creditors. They may, in some cases, even get your late fees wavered.
How do these programmes work?
Firstly, you will be asked to deposit your income into an account. The company will then distribute your income between all creditors, making sure each payment is advantageous for you. Remember that you are allocated money of your own, which you use to maintain your normal standard of living.
Do I need to go through a debt managment company?
Can I manage my debt problems on my own?
Of course you can, if they are under control and you know what you are doing. Most creditors will be happy to negotiate a new payment plan for you – they want you to make your payments after all. You can also create your own budget and be strict about what you are spending you money on. This way you can catch up on all your overdue bills.
Many clients have tried this system by themselves, only to realise that they do not have the discipline to maintain it. This is why these programmes have been put in place.
Which debt management programme is the best?
Some debt management companies may charge exorbitant fees. Always check what your fees will be before entering into the agreement. Also, opt for a professional and licensed debt management company with proper industry accreditations.
Also, be sure to ask how your payments will be allocated among your creditors and how confidential your information is. Once you are happy with everything, be sure to get a quote in writing so you have proof of agreement.