Are you feeling overwhelmed by debt? Struggling to find a way to make ends meet and pay back your creditors? StepChange, the UK’s leading debt charity, can help you manage your finances and take control of your debt. Read on to find out more about how they provide expert debt advice and fee-free Debt Management Plans.
WHAT IS DEBT MANAGEMENT?
Debt management is a process whereby an individual or organisation works with you to repay outstanding debt(s). This can be done through a variety of methods such as: negotiating with creditors, creating a repayment plan or declaring bankruptcy. If you are struggling to make ends meet, a Debt Management Plan may be a good option for you. It can help you get your finances back on track and get out of debt faster.
CREATING A DEBIT MANAGEMENT PLAN
If you are struggling to keep up with your payments or if you are worried about falling behind, a debt management plan could be a good solution for you. Consider seeking professional help from a financial advisor, a credit counseling agency or a debt advice service like StepChange. They will be able to help you.
If you are struggling to make ends meet, a Debt Management Plan may be a good option for you. It can help you get your finances back on track and get out of debt faster.
WHO ARE STEPCHANGE?
StepChange is a non-profit debt charity organisation that provides debt advice and support to people struggling with debt. They offer a range of services to help people tackle their debts. These include debt advice, debt consolidation and debt management plans. The company has a team of experienced advisers who can provide tailored advice to each individual based on their circumstances. They also offer a range of tools and resources on their website to help people manage their debts.
HOW DOES STEPCHANGE HELP PEOPLE TACKLE THEIR DEBTS?
They help people tackle their debts in the following ways:
- Debt Advice: Free, confidential and expert debt advice to help people understand their options and create a plan to manage their debts.
- Debt Consolidation: This involves taking out a new loan to pay off all of your existing debts. This can reduce the amount you need to pay each month and make it easier to manage your finances.
- Debt Relief Orders (DROs): DROs are a type of debt relief for people in England, Wales, and Northern Ireland with low income and limited assets. A DRO freezes your debt repayments and · interest for 12 months. If your financial situation hasn’t changed at the end of this period then all of the debts included will be written off (‘discharged’) and you won’t have to pay them.
- Individual voluntary arrangements (IVAs): Is a legally binding agreement between you and your creditors that helps you pay off your debts at an affordable rate.
- Debt Management Plan: This is the most commonly used service. Where StepChange help individuals create a debt management plan (DMP), which is a budget-based repayment plan that helps people repay their debts in a more affordable and manageable way, over an agreed period of time. This can lower your monthly payments and give you some breathing space to get back on track with your finances.
WHAT ARE SOME OF THE BENEFITS TO HAVING A DEBT MANAGEMENT PLAN?
- Helps you get out of debt faster
- Reduces the amount of interest you pay
- Stops creditor harassment
- Improves your credit score
IF YOU ARE CONSIDERING CONTACTING STEPCHANGE, LISTED BELOW ARE SOME STEPS TO TAKE FIRST:
- Gather all your financial information: Make a list of all your debts, including the creditor, interest rate, minimum monthly payment and current balance.
- Create a budget: Determine your monthly income and expenses to understand how much you can realistically afford to put towards paying off your debts each month.
- Prioritize your debts: Decide which debts to pay off first based on interest rate, balance and whether they are secured or unsecured debts.
ACTIONS STEPCHANGE WILL TAKE:
- Negotiate with creditors: Try to negotiate lower interest rates or monthly payments with your creditors.
- Make a payment plan: Decide how much you can afford to pay each month towards your debts and create a schedule for making payments.
- Ask you to ensure you stick to the plan: Be consistent and make timely payments. Keep track of your progress and adjust the plan if needed.
- Advice you of all the risks and benefits involved: in having a Debt Management Plan and will decide whether this is the right solution for your situation. If it isn’t, they will talk through other solutions such as: Personal bankruptcy, Insolvency and Administration order, to mention a few.
CONCLUSION
In conclusion, StepChange is a remarkable organisation that is dedicated to providing debt solutions to individuals and families across the UK. With over 20 years of experience, StepChange has helped millions of people to get back on track with their finances and take control of their debt. The organisation offers a range of services, including debt advice, debt management plans and individual voluntary arrangements, all of which are designed to help people overcome their debt problems and achieve financial stability.
Whether you are struggling with high levels of debt or simply need some guidance on how to manage your finances more effectively, StepChange can provide the support and resources you need to achieve your goals. If you or someone you know is struggling with debt, share this article with them so they too can take the first step towards a brighter financial future.
