Category Archives: Debts


Financial Tips to Manage Overwhelming Debts

There are too many reasons of why a person gets trapped with debts. Ranging from the understandable purposes, such as bad investment choice and unexpected medical bills, to reckless and toxic habits, like gambling and overspending on luxury goods. Anyway, the dues are coming up, and there is no reason to cry over the spilled milk. All left to do is to face the consequence.

Here are what-to-dos when you have too many debts:

Do it Yourself (DIY) debt management

Before handling the debts by yourself, you should ask yourself these following questions:

1. Are you a realist person?

You can’t answer this question just by a thought that pops up in your mind. The most objective method is by looking back at your financial records, especially the ones that require prediction.

2. Do you pay attention to details very well?

Still, the best way to determine whether you are capable of meticulously evaluating your debts or not is by looking at how well you handle numbers in the past.

Do not risk any mistakes to happen, specifically when you have heavy debts. It is your future finance that is at stake.

3. Do you have enough time to allocate?

DIY debt management will you the time not only when you are in the planning stage but also when negotiation with your debtors is needed.

Personal-debt-managementThis question is strongly tied to the first one. Calculate the available time for the matter realistically. Otherwise, your DIY debt management can turn into a financial disaster.

After the self-evaluation of how credible you are to manage your debts, you should begin scheduling your activities, such as preparing the necessary documents, meeting with the debtor, re-assessing your financial condition, and reviewing your payment plan.

Consulting with a debt advisor

Debt-ConsultationChoosing for the right consultant might be tricky because there are many advisors with inadequate knowledge. All they can provide is just general advice which will not give you any practical benefit. Or worse, they will cost you more than they offer.

The easiest way to spot credible debt advisor is by checking on their certificate and their membership with affiliated organizations. There are free consultation services for debtors with excellent accessibility, such as Clearpoint, a member of the National Foundation for Credit Counseling (NFCC), for US residents; and deby advice Leicester for UK residents. These services help to manage personal debts and even to file for bankruptcy.

Filing for bankruptcy

Over-debtAlthough bankruptcy can be a result of a reckless decision, governments still offer a second chance for those who suffer from financial collapse. This is the worst situation that can happen to a debtor, and handling the filing requires lawyer service.

Mostly, the causes of bankruptcy are having a mortgage and student loan that exceeds their capacity to pay the debts off. If the bankruptcy plea gains approval, the debtor is lifted from the financial burdens.

saving money

Benefits Of Hiring A Professional Debt Advisor

No one wishes to be in debts as it can cause many problems. However, it is easy to find yourself into many debts after losing control of your financial management. In this case, an intervention of a professional debt advisor is a prudent move to make. Such an expert will offer you Individual Voluntary Arrangement Help & Advice, among many other benefits. Some more benefits are highlighted below.

Benefits of hiring a professional debt advisor

Better debts management plans

cash Most debts are manageable if one can get the best advice and planning strategy. This is what a professional debt advisor will give you as a first step. With a way out then there is nothing much to worry about. The management may include the priority of who to pay and who to wait after a negotiation. Otherwise, the worst nightmare of everyone asking for their money will now be solved.

Help to negotiate with creditors

For instance, in the case of an individual voluntary arrangement, the advisor may arbitrate and help strike a deal on affordable repayments plans with your creditors. The advisor can go ahead to monitor how to repay as per the new agreement. This is a relieve as they can also help build a trust again between you and the creditors.

Advice on how to avoid debts

If one were aware of how to avoid debts, then there would be no problem. Therefore debt advisors offer their clients advice and tips on how to avoid accumulation of debts in the future. Such tips may not make the current case any better but after you clear all your current mess and made your credit score up, then the tips become applicable. This together with the experience you just had will help you avoid accumulation of debts in future.

financial management advice

financial management adviceMost people get an income which can sustain them or their business with a minimum debt or at zero debt. However, how they spend the money determines whether they will go for a loan or not. An advisor will also tell you projects worth getting into debts and those that you must save for. It is also through this advice that you will get assistance on setting financial priorities.

Out of court solutions

There is no doubt that creditors will sue you when you are declared bankrupt. However, the debt advisor through all the above solutions can prevent the scenario going this far. If you agree to heed to the advise and follow the plans well, then the creditors will give you another chance.