The
route to becoming debt-free without going bankrupt.
If you have significant debt troubles, there are a variety of
companies in the UK who can assist you in repaying these debts
and help you avoid the need of going bankrupt, which will only
further affect your credit rating in the future. Some companies
offer services called debt consolidation, which basically puts
all of your existing debts together in one big pot and then
spreads it out over a longer period of time to help reduce the
monthly payments you need to make to service the debt to an
affordable amount. These debt consolidation companies will often
work with you to establish what amount you are able to pay each
month and then work back how many years they need to spread
the debt over in order to make the monthly figures work for
you. Bear in mind however that the smaller the monthly payment
you go for, the longer the period the debt (in years) needs
to be spread over and therefore the greater the amount of interest
you will end up paying over the total period of time it takes
you to finally pay off all of your debt.
This method does
however often save you from the need of going bankrupt, which
is really only considered as a last resort and should be avoided
if at all possible. Debt help is a very useful service to consider
if you are struggling making your existing payments and have
already missed several payments or defaulted on many payments,
and you now have bailiffs visiting you or threatening to visit
you. Through debt help and debt consolidation, these existing
debts will be taken on by the new debt help company who will
pay the existing creditors off on your behalf and allow you
a greater period of time to pay these debts off through this
new company (reducing the equivalent monthly payments for you),
easing the pressure and stress a great deal.
All debt help companies
offer free advice initially and are happy to speak with you
to discuss what you and they mutually feel is most appropriate
for your circumstance and levels of debt. Initial discussions
are no-obligation, so it is worth speaking with a couple of
debt help specialists to see if debt consolidation is the right
service for you before agreeing anything.
