Debt Management Plans
Facing up to debt problems can seem like a scary task, but once you take the first steps and seek debt help you'll find that the situation becomes much less stressful. You can apply for a Formal or Informal Debt Agreement by using a good Debt Management company which will work out a debt management plan on your behalf. Debt management firms will offer to mediate between you and the people you owe money to – making the process much easier and smoother. Depending on the level of your debts (and how many people/companies you owe money to), your Debt Management Plan specialist will be able to work out which route is best for you and offer informative help. With a debt management plan your payments are usually gathered into one monthly payment, while any interest is frozen. This makes it much easier and less expensive to pay off your debts. Your debt collectors will not be calling anymore and you can look forward to a debt-free future!
Compare Debt Management Plans
Look forward to living a debt free life with a Debt Management Plan. Make sure a Debt Management Plan is the right debt solution for you.
Are you in debt?
There are thousands of people across Australia that are in debt and most people in their lives will experience a debt problem at some point.
It can be relatively easy to fall into debt. Simply missing payments on products like credit cards and loans and the fines and interest charges can quickly accumulate faster than you can repay. Unfortunately, things can rapidly spiral out of control and paying off your debt can become more and more difficult.
The most important thing is to take action as soon as possible. There are a variety of debt solutions that you can consider, one of which is a debt management plan. Remember that the fight solution will depend on your personal and financial circumstances so you need to make an informed decision before you decide which one will work best for you.
What is a Debt Management Plan?
A debt management plan is an informal agreement that you make with debt management companies to repay your debt over a period of time.
How can a Debt Management Plan help you?
Many people turn to debt management plans because your repayments can be reduced to a more affordably amount. This will make it easier for you to manage and budget your expenses.
With a debt management plan you will work with debt experts who are leaders in helping people overcome their financial difficulties. You can depend on a non judgemental service and work with debt specialists who you will be able to contact for support and guidance whenever you need.
Debt management plans are very flexible and as there are no legal contracts you can walk away at any time. Furthermore, the plans can be easily adapted if your circumstances change. For example, if you can afford to pay off more of your debt at a certain time because of an income increase the plan can be changed accordingly. On the other hand if you find your income reduces your monthly payments can be reduces to help you cope.
Get your creditors off your back and have interest charges frozen
The main advantage of taking out a debt management plan is that the above companies will deal with all correspondence from your creditors which is great for those who are being constantly hassled.
Not only will they take away this stress but they can even negotiate for reduced payments and have interest and other charges on your debt froze. This will help you get back on track fast but your bear in mind that your creditors do not have to by law agree to such arrangements.
What are the disadvantages?
Debt management plans can take a long time to complete especially if you are in a considerably amount of debt. The exact amount of time it will take will also depend on how much you can comfortably afford to pay each month.
If your creditors do not agree to any proposals to have the interest on your debt reduced you could find that smaller monthly payments will mean that your debt can take a longer time to pay back which can cost you more in the long run.
Some may be concerned that a debt programme will appear on your credit report which could affect you in the future when applying for products such as loans and credit cards. However, if you are considering a debt management plan you have probably already damaged your credit report. Remember that once your debts have been cleared your credit rating will start to improve which will stand in your favour.
Find the right plan for you and your debt
If you think a debt management plan is the right debt solution for you and your individual situation you should make sure you find the one that best suits you.
It is important that you take the time to compare different plan providers. You can do this in the table above. Some providers may charge you a fee for using their service while some might be completely free. If the plan you go for does charge a fee make sure you know exactly what you are paying for.
07 October 2014
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Whether its advice or guidance whilst dealing with debt management this article provides all the information needed to assist on making the right choices.
12 August 2013
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Just under 10,000 Australians filed debt agreements in the 12 months to June 30, up nearly eight per cent on this time last year.
30 July 2013
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If you struggle to pay your bills on time then it is worth considering a Debt Management Plan (DMP) to help you get out of debt.
26 March 2013
A debt management plan can help you into a life with less problems, and can be a solution when multiple debts become too much to manage.