Debt Consolidation Advice
Many debt problems start with individuals struggling to manage a number of different creditors at once. Many find that having to make multiple payments to multiple creditors at multiple times of the month very confusing, which leads to missed payments and interest and charges being added.
Getting debt consolidation advice could help; instead of making multiple payments to different creditors, debt consolidation allows you to make one lower monthly payment which covers all your creditors. There are debt consolidation options which involve taking out a loan but a better option for you could be a debt management plan.
A debt management plan is designed for those who struggle to deal with multiple unsecured creditors and find they are struggling to make payments. A debt management plan allows you to consolidate these debts into a single monthly payment. So although you will be repaying your debt over a longer period of time, you have the peace of mind knowing exactly when and how much your monthly debt repayment will be.
Sometimes interest and charges can be frozen with your debt management plan, although this cannot be guaranteed.
If you like the idea of consolidating your debt but have high levels of unsecured debt (typically £15,000 and over), an IVA could be a better debt consolidation option for you. It is a legally binding contract between you and your creditors where you agree to repay what is affordable for a typical period of 60 months. On completion of the IVA, any unpaid debt is written off.
As you can see there are a number of debt consolidation options which do not require any further borrowing. But we would always advise that you seek professional debt consolidation advice so a debt solution can be found which is right for your circumstances.
For expert debt advice and for more information about your debt consolidation options, call One Advice today on 0800 048 1752.
