Debt Management – Boon or Bane
December 21st, 2010 by Poonam KhatriOften, when we try to set our finances in order and find a permanent way to get the debts out of the way, we get confused because of the various solutions available for someone in debt stress.
The most popular of these available solutions is Consolidation Loan, where the debts are consolidated in one loan with one interest. It does not affect the Credit History and the applicants are mostly allowed to borrow extra money for personal use. What we don’t realize is by consolidating are loans we are not getting rid of our debts but, in some cases increasing the outstanding amount. This leads to a vicious circle of getting one loan to pay off another.
Therefore, in case you are aiming to be debt free and wish to be the boss, when it comes to your financial situation, Debt Management Plan is your best option.
Like any other debt solution, even Debt Management Plan also have its pro and cons. However, if you have unsecured debts with high interest rate and you are finding it hard to make ends meet, then a Debt Management Plan is something that might help you. Even though, a Debt Management Plan has a negative effect on your credit history, it helps you to get back on your feet even with less income.
As a Debt Management Plan, is easily available and you can apply for one regardless of your social status, you can make payments that you can realistically afford without putting an additional financial strain on yourself. Also, compared with IVA, Debt Relief Order and Bankruptcy etc. which gravely affects your credit history and is reflected on your credit files, Debt Management Plan is not reflected on the credit files as it’s an informal agreement with creditors.
So, if you have unsecured debts of more £1000 and you are finding it hard to maintain continuous payments, you can opt for special Debt Management Program offered by Repayment Management Services i.e. RMP (Repayment Management Plan).
RMP will help you pay all your creditors without adding an extra strain on you financially. When your RMP is set, you will be provided with a dedicated Account Manager available to sort your queries and deal with your creditors. Monthly Statement, Timely Review and Free Phones are few other services that we provide you to make you finances sound and your life simpler.
Contact us on 0800 135 7143, for a free assessment of your income and expenditure. Our Advisors will be more than happy to provide a free offer of payment and an array of suggestions best suited for your profile.
Nice and informative post. Thank you