Getting out of DebtsMarch 1st, 2011 by Poonam Khatri
For all of us, getting in debts is quite easy. A little ignorance towards our spending and there went the blissful financial days.
Broadly speaking there only two reason to get into debts either you faced a catastrophic situation and find your income reduced or because of the irresponsible spending and usage of credit.
Most of us are in debts because of the first reason; redundancy, disability, death in the family, emotional upheaval, divorce, critical illness are few reason where you might find that you are no longer able to pay the monthly payments for the credit card or loans. Even though you can’t help the situation, you need to deal with this situation reasonably and ensure that your finances aren’t going any worse.
Second reason to be in debts is miss management of funds and irresponsible spending. If you are in debt because of these reasons, getting out of debt will be a difficult task for you.
Whatever the reason may be for your current situation, reasonable budgeting and immediate steps will help you save the situations from the worse.
Firstly, you need to look at your bank statement and figure out areas, where you have been spending a lot and figure out ways to cut down the costing. These areas could be food and household, gas, electricity, water, clothing etc. In an attempt to control your expenditure you might want to change your current providers for better deals.
Second and Most Important step, is to speak to your creditor and try to reduce down the monthly payments expected on your account. This can be bit tricky as you need to provide the in depth details of your financial situation to your creditor with a few other details and hence, you can sign up for Repayment Management Plan (RMP, special debt management program from RMS) which will take the burden of your debts from your shoulders.
With an RMP in place you are only required to pay a single payment to RMS and we pay to your creditors. As a professional organization, we present the required documents and facts to your creditors and also request them to freeze any interest or charges applicable on the account.
You must also find ways to supplement your income and stop or cut down expenses on eating out, movies and other stuff.
Getting out of debts, after you have messed it once can be really difficult. Take steps now and ensure a safe future with your RMP.
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.