It can be an awkward situation to decide that a debt problem exists and challenging first phone call to ask for financial help. This can also be the most important part of becoming debt free again. It’s not easy to take this first step to change your debt problems. This is because people feel frightened; worried the debt situation will get worse. They feel scared they will be judged for their financial failings. They also are concerned their debt problem will be shared with multiple companies looking to make money from their misery, so the first step is key to decide which debt solution is the best for each individual.
The right debt solution will depend on the situation which is why the best answer is to seek debt help from a charity. There are lots of debt charities out there to trust too.
Which Debt Solution To Enter?
Firstly, if anybody can give you debt advice to tell you which debt solution is best without actually completing a statement of affairs then they are misleading you. A statement of affairs is an income and expenditure to determine if you have any money available to repay your debts, coupled with a breakdown of any assets you own (house/ car etc) and your unsecured debts.
Your unsecured debts include your credit cards, loans, overdrafts, catalogues and other debts which are not linked to an asset. These debts can all be included in a debt solution.
Once you have this information a company can give you the advice to resolve your debt problems. Most people will have a couple debt options to choose from. These solutions may vary in what they can do to fix your money worries – some will freeze interest and charges on debts, others will expect you to repay all of the debt back and some will allow you to write off a percentage of the debt at the end.
With some debt solutions which you could choose there will be an option to freeze the interest and have it written off at the end. This is guaranteed in many debt solutions, but not all of them, so it’s best to check!
Which Debt Company?
The right debt solution should give you the positives and negatives of each debt plan. There are negatives such as all debt plans will affect your credit file. The best option is to speak to a debt charity who should have a licence to provide debt advice. The charities are free and don’t charge you any money. Their advice is impartial and some may do the debt solution too.
You can speak to other debt companies who will charge you a fee for managing your debt solution but there can also be setup fees with no guarantee the interest / charges will be frozen or if the plan will be accepted.
With so may companies on TV, radio and online you should feel comfortable with your choice because you may not be able to change once your in the plan.