Debt Solutions How Do I Know Which One Is Right For Me

If you are in debt, and are unsure as to how you should clear your debts, you may want to consider a professional debt solution.

Debt solutions are specifically designed to help you get out of debt in a realistic, affordable way. Different solutions may lower the amount you are required to repay each month and/or write off the portion of your debt that you cannot afford to repay.

But how do you know which debt solution is right for you? Here’s a brief look at some of the debt solutions available:

  • Debt management – this debt solution may be right for you if you can’t keep up with the repayments to your debts as you had originally agreed, but you could afford to repay your debts within a realistic timeframe if you were allowed to change the way you’re repaying them. Debt management works by asking your unsecured creditors to accept changes to your repayment plan: for example, lower monthly payments and/or a freeze/reduction in interest and charges. Please note, though, that your creditors are not obliged to accept any changes – and that failing to repay your debts as you originally agreed will have an impact on your credit rating, which can make it harder and/or more expensive to obtain further credit during the six years it stays on your credit report.

  • Debt consolidation – this involves taking out a new loan big enough to repay your existing unsecured debts. Since this means you’ll have just one debt to pay off, instead of many, debt consolidation can simplify your finances, making it easier for you to remain in control of your debt repayments. Some people take the opportunity to slow down the rate at which they are repaying their debt – by arranging to repay it over a longer period of time, they can reduce their monthly payments to a level they’re sure they can comfortably afford. However, if you arrange to do this, you may end up paying more overall, as you will be paying interest for longer (this also depends on the interest rate on your consolidation loan, and how it compares with the rates on your original debts).

  • IVA (Individual Voluntary Arrangement) – this is a form of insolvency that could be right for you if you have an unmanageable level of unsecured debt that you cannot afford to repay. For an IVA to be appropriate, you must be able to commit to making regular monthly payments throughout the agreement – which, in most cases, would last for 5 years. Before an IVA can start, voting creditors accounting for at least 75% of your debt would have to agree to the terms you and your IP (Insolvency Practitioner) set out in your ‘IVA Proposal’. Once you have made your final payment and the IVA has come to a successful conclusion, any outstanding unsecured debt will be written off. Note that you may be required to release some equity from your home (if you’re a homeowner) so you can pay your creditors more – and that your creditors may try to make you bankrupt if the IVA fails.

Now bankruptcy is the last lap when your financial downfall is complete so it is better to avoid getting into trouble with the International Debt Collectors agency because IVA is bound to fail if you are not able to manage your EMIs so outstanding debts need to be cleared out as soon as possible because if they’re written off, then it is you who stand to lose everything you have to repay the amount that you’ve borrowed.

Please bear in mind that any debt solution has advantages as well as disadvantages. These descriptions only provide a brief description of these three debt solutions. To find out more – and to find out which one may be right for you – contact a professional debt adviser.

The Importance Of Credit Repair

When discussing the topic of credit repair, most people have a hard time really deciding where to stand about it’s worth to the individual or business. Well, what we’re going to talk about is why it is important to anybody who doesn’t have perfect credit and why it’s vital to the financial future of those who have “bad” credit.

First and foremost, let’s discuss the truth of the value of good credit. In our economy and in today’s times, good credit is extremely important, and vital, to those who want to make the most of their finances. This isn’t a secret, but there’s more to it than just having a good “score”. Credit reports are used for more than getting a car or a credit card. Let’s look at a few of these other situations.

In order to have “finances”, one must have a “job”. More and more potential employers are pulling credit reports nowadays as part of the screening process for potential employment. The major reason in most industries for this practice isn’t because they’re checking the financial well-being of potential clients. Sure, there are industries, such as banking or other cash-intensive businesses, that do care about that because of the risk involved. However, in most industries, they’re checking the “character” of the applicant. Surprised? What references do most people give? People they know and are expecting them to give a potential employer their name. Resumes don’t reveal a ton about the “person” but only the achievements. So, employers look at your credit to see if you pay your bills on time, have unpaid child support, have a judgment against you, etc. to try to form a picture of your character. So, fast credit repair services in this instance can help to clean up that picture and make it more accurate. Credit repair can help individuals ensure that they can get the job they want and that nothing will stop them from getting that position with great benefits, like insurance…

Now, the insurance that we’re going to talk about would be stuff like car insurance, life insurance, renter’s insurance, etc. These insurance companies don’t want you to not pay premiums and get dropped and they believe it or not, are known to use credit sort of as an indicator too. So, as far as finances are concerned, sure you have a job, place to live, maybe even a car, but 2 out of the 3 need insurance and you can pay through the nose with bad credit. A credit repair specialist can look at your credit and advise you as to the ways to get that credit rating cleaned up and can save you thousands over the course of your life.

Obviously, people need a roof over their heads and transportation and most people already understand how credit impacts these situations. Bad credit can obviously keep you from getting the house you want or can make you pay entirely too much for it due to the interest rate you’ll get. If you can’t get it, you’ll have to look to rent and most of the nice, friendly, safe places to live run credit checks. Therefore, if you can’t get into a house or a reputable apartment in a good part of town, your bad credit could put you and your family at risk in a less desirable place to live.

Credit affecting your transportation is easy. Good credit can get you 0% APR at a lot of dealerships. Bad credit can have you end up paying 19% interest on car and paying nearly twice what the car’s worth by the time you get it paid off after the 72 months it’ll take you due to the high payments. Sure, you’ll see the “Bad Credit, No Credit, No Problem” signs all over town but that’s because they’re about to sell you a $15,000 car that you’ll pay $30,000 by the time it’s done.

A good credit repair specialist isn’t someone that only people who are struggling can use. Even people in average situations can see great improvements in their situation by working with a credit repair specialist. A good credit repair specialist can be just as important as a Financial Planner or Personal Banker for consulting, advice, and help when you have decisions to make about your credit.