Are You Getting the Right Debt Advice?

Struggling with debt can be a difficult and stressful situation, and it's easy to feel like you will never be able to find a way out.

More and more people are getting into trouble with debt these days, yet many are unaware of what help is available. In reality, even people with severe debt problems can get help from a professional debt adviser.

Importance of good debt advice

If you ever find yourself having problems with your debts, then you should contact a professional debt adviser as soon as possible. Since the interest on debt often means it grows very quickly, putting it off can result in you paying a lot more overall.

How can a good debt adviser help me?

General debt help

In a lot of cases, simple debt advice is all it takes. If you have trouble managing your money, you're not alone - many people have this problem, and it's not unusual for it to lead to debt problems.

Your debt adviser may be able to recommend a few changes in your spending that could help you to get back on track. Equally, they may help you to set up a budget, so you can make sure you're aware of how much money is needed for each of your commitments, and how much you have left to spend as you wish.

If the situation has become more serious, and your debts are becoming unmanageable, then your debt adviser may recommend a debt solution that could help your situation.

What debt solutions are available?

There are a number of debt solutions available that can help people in various situations. Your debt adviser can help you to decide which (if any) is best for you.

Debt consolidation loan

A debt consolidation loan is typically for people who have relatively manageable debts, but would like to simplify their finances and/or reduce their outgoings. It is essentially a new loan that pays off your existing debts, ending your ties to your original creditors and consolidating those debts into one convenient monthly payment.

Many people with a debt consolidation loan choose to reduce the amount they pay each month by spreading their repayments out. If you choose to do this, be aware that because you will pay interest for longer, you may end up paying more overall.

However, it's still possible to save money if you consolidate high-interest debts, such as credit cards. So long as the interest on the debt consolidation is lower, you could save money, although a longer repayment period may limit the amount you save.

Debt Management Plan

For debts that have become unmanageable under the existing terms, a debt management plan is an informal arrangement with your creditors that can allow you to repay your debts at a more manageable pace.

As well as reducing the amount you will pay each month, you may be able to negotiate a reduction or freeze in interest and other charges, which can prevent the debt from growing - or at least slow down the rate at which it's increasing.