Cut down your debt now!

| August 19, 2013

Debt Consolidation ProcessSometimes, the level of debt we are in can spiral out of control. It?s easy to obtain credit these days; credit cards are thrown at us the minute we turn 18 and payday loans are only a text away.

But paying back these loans is a lot more difficult that getting them. Sometimes people have manageable debt and are able to keep it under control, which is great. But if your debt is out of control and you hide under the kitchen table every time there is a knock at the door, what are the solutions open to you?

One solution is to call your creditors. Make a list of all the people you owe money to. If you can?t remember all the debts you have, apply for an Experian credit report. It?s free when you have one on a trial basis, and it will show you exactly who you owe money to. Once you have found this out, sit down and work out how much you can realistically afford to pay back. Don?t be tempted to offer more than you can afford ? if you don?t keep up with a payment agreement, the creditors are less likely to accept another agreement and you might find that you?re in a worse position than when you started.

If the creditors are not helpful, and don?t want to accept the repayment terms you have offered, perhaps it is time to think about a trust deed. A trust deed is a government backed program which will liaise with your creditors, getting them off your back and freezing the interest on your accounts while arranging a repayment schedule with you to pay back all the money you owe, usually over a period of 3 years. Check out trust deeds for more details, plus the pro?s and con?s of taking out a legally binding trust deed. Although it?s not an ideal solution, for some it can be the difference between a life in debt and a life debt free.

 

Cut down your debt now!

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Category: Debt

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