Top 5 things you should know before getting debt help

We need to talk about something. And that something, is your debt problem. Like you, more than 8.3 million people in the UK are unable to pay off their debts. Yet despite this figure (a figure that increases by the day), attempting to deal with a debt problem is almost always isolating.

In this guide we provide everything you need to know before you seek debt help – all of which aims to make dealing with your debt problem as painless as possible.

 

Debt fact number one: Don’t believe all that you read online

You may have heard that you should avoid using companies to help you deal with your debt problem, and that instead you should save on the fees by handling it yourself.

Our advice on the matter is this – YOU (and only you) should decide whether you need a company to help you with your debt problem. For those who have patience, good negotiating skills, experience with legal documents and the confidence to speak with creditors, going it alone may be the best choice. However in reality, this collection of skills are often few and far between, so for some people the extra assistance is a welcome relief, and also provides the extra professional skills needed to help them choose their debt management solution.

There is one important condition to the above however, and that’s that you’ll need to choose wisely when deciding which company to deal with. Speaking of which…

 

Debt fact number two: Not all debt management companies are created equal

If you’ve done even the slightest bit of research, then you may have noticed just how many different debt help companies there are. While some are providers of debt management solutions such as IVAs or DMPs are trustworthy, others may be relatively new to the industry, or might charge fees that are far and away above the average.

Here are some key questions that you should ask before moving ahead with the debt management company you’re considering talking to:

  • Are they willing to explain their contract in detail?
  • Do they have online reviews – are there any that might be a cause of concern?
  • Are their fees clear? Not all bodies and debt help businesses charge for their services, however if they do charge fees, they should be clear and transparent about what they are and how much they cost.
  • If they serve as a third-party company that connects you with other providers (such as the way National Debt Help would put you in touch with an IVA provider), do those providers have good indicators that you can trust them, such as…
    • A professional website
    • Positive online reviews
    • An active social media presence

 

Debt fact number three: There are many possible debt solutions out there – making the right choice should depend on your credit rating

Many people attempt to continue plodding on, month after month, as they feel their bad credit rating means that they have no alternative. However there are many debt solutions out there – ranging from those suitable for a good credit rating (such as a personal loan for debt consolidation) to others that could help individuals with the poorest of credit ratings.

Here’s a sliding scale…

Good credit rating

Personal loan for debt consolidation

Credit card balance transfers

Equity release loans

Remortgaging

Individual Voluntary Arrangement

Debt Management Plan

Debt Relief Order

Bankruptcy

Poor credit rating

Debt fact number four: You’ll need to have a full grasp on your debt, income and expenditure before you can move forward

Whether you’re considering a debt management solution such as an Individual Voluntary Arrangement or are just about to call a debt charity, you’re going to need an in-depth breakdown of your circumstances as they are right now. This will mean creating lists of your debts, as well as all of your income (such as any wages and benefits) and outgoings (such as your gas, electricity, rent and so on).

 

Debt fact number five: Finally – facing your debt isn’t as scary as it probably feels right now

As we approach the close of this blog, we want to stress that once you’re done reading, you should take a deep breath and go ahead and make contact with someone who can help. There are many good charities out there that specialise in helping those who are struggling with debt problems. Here’s an overview of some of the most well-known…

 

And that’s it. Now that you know all you need to before seeking debt help, it’s now time to take action and talk about your debt problem with an expert.

The National Debt Help team are experienced professionals in debt management. Talk to them today about what the next step is and how you’re closer than ever to finally being debt free (feels great, right?).

You can contact the team by phone or message. Call us on 0800 002 9051, or use our contact page and we can call you back.

 

 

 

 

*An Individual Voluntary Arrangement (‘IVA’) is subject to the customer meeting qualifying criteria and gaining creditor acceptance. Monthly IVA payments include fees and may differ to the example provided, based on the assessment made of your own personal circumstances – these fees will be clearly explained to you in writing by your IVA company. Debt write off amounts are subject to creditor acceptance and vary by individual customer based on their own financial circumstances, and are applied upon successful IVA completion.

Substantiation example, Someone owes £60,000, they pay £100 over 60 months which equals £6000, write off amount would be £54,000 which is 90% of total debt level. Upon submitting your details on this website we will pass your details to one of our approved partners as this website does not give any advice.

Free debt counseling, debt adjusting and credit information services are available from the Money Advice Service.

National Debt Help
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