Your debt problems
Have you recently been in debt? Are your credit card payments out of control? Is it hard to pay your other debts because you can't keep up with your mortgage payments? If so, there's a good chance that when you're not at work, your life is spent dealing with phone calls from your creditors that make you feel down, depressed and hopeless.
You're not alone.
Debt has had a crippling influence in modern times. An age of unlimited spending has led to an age of unprecedented recession. In recent weeks, problems that many thought were over have returned with a vengeance. People with debt problems need to know that they are not alone. So many people are struggling with debt today that those who are not are in the minority. Don't be ashamed of your debts. Silence leads to more problems and more debt. Talk to someone about your debt today and start your journey towards a debt-free life.
Solutions to debt
The most important advice that anyone suffering from debt problems should get is - get help. With the increase in debt problems in recent years, there has been a corresponding increase in the number of debt resolution companies wanting to lend a hand. Many of them offer free, no-obligation advice. Don't sit back and let your total debt grow to a level beyond your means. There are now so many options to help you that the first step to becoming debt free may only be a phone call away. Debt management companies offer various solutions, some of which are described below:
Debt Management Plans
A debt management plan - also known as a DMP - is an effective and flexible way to manage your debt. If you owe more than one creditor, many debt management companies will help you consolidate your debts into one affordable monthly payment that fits your means.
Debt management plans can be the perfect solution. DMP companies can ensure that you no longer have to deal with calls from your creditors. Your interest payments can be reduced or even frozen. And you can do all this without having to take out additional loans or put your home at risk.
As with all debt solutions, however, there are pitfalls to a debt management plan. Payments can be extended over longer than expected if you can't keep up with your payments, and you still have to pay your mortgage and bills. Unfortunately, it is unrealistic to expect a successful debt solution without negative elements. Expecting a debt solution without negative elements is unfortunately unrealistic A debt management plan may be the best solution fro despite the negative elements that come with it.
Individual voluntary agreement
An Individual Voluntary Agreement, also known as an IVA, can get you out of debt in as little as five years. The simple way to describe an IVA is as a formal agreement between you and your creditors where you mutually agree a series of reduced payments on your total debt.
IVAs are an alternative to bankruptcy and have far less damaging consequences. As long as you have a regular income and can agree to meet fixed payment terms over a fixed period, you may be suitable for an IVA. However, IVAs are a more drastic measure than debt management plans and the two should not be confused. A debt management plan may be more suitable for your situation. You should seek advice from a reputable source before committing to anything.
An IVA offers some of the same benefits as a debt management plan. Your debts will be consolidated into affordable monthly payments, calls from creditors will cease, and once the debt is written off - you can start afresh. Some of the drawbacks, however, are more serious. You must disclose all assets and liabilities, and any overstated assets may be written off as payment for your debt. You may also lose any winnings, inheritances or bonuses you receive. And of course, the results of non-payments can be harsh. Failure to comply with the IVA can lead to compulsory bankruptcy.
Bankruptcy
And now we come to one of the scariest words in the English language today: bankruptcy. Bankruptcy is a very serious issue and has far-reaching consequences that can be deeply damaging for a long time. If you can avoid it, do it. Unfortunately, many people can no longer avoid it. If you are unable to repay debts within a timeframe that creditors consider reasonable, you may have very little choice.
Bankruptcy is a last resort. All other options should be considered first. With bankruptcy you will find that all your assets are at risk, you may lose your house, your car and your business. But after a year, the debts that remain will be paid off for you. You will be debt free.
Bankruptcy is a horrible word, but is also a necessary one. After bankruptcy many things will be different, many things will be worse, but many will also be better.
Debt Advice
Without a doubt, debt advice is your first step on that long and treacherous road to financial freedom. This article has tried to clear up the differences between certain debt solutions, and give advice on the main ways of becoming debt free. But this article does not claim to be enough. There is more to all of these solutions than can be covered here, and the best debt advice is simply to talk to someone; to talk to someone and to remember not to feel ashamed.
Debt is easy to get into, hard to get out of. Debt is a crippler, it is a fearsome enemy, and it is a growing epidemic. But there is a way out of debt. Debt management is a growing industry, and although it could not exist without debt, the industry is full of people who want to help end debt for you. Do not suffer in silence. Do not let debt build around you. Get help today.
The Cash Gurus is a debt management company offering free advice with no obligation. They offer a variety of options and can repackage your debts within 24 hours. Their team has helped thousands of people over the years and have dealt with all kinds of debt. They understand that debt can happen to anyone at anytime, and are here to help. They want you to be the next to join their long list of satisfied customers.