Is it OK to Use a Debt Management Plan To Get Free of Debt?

 

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Is it OK to Use a Debt Management Plan To Get Free of Debt?

Author: Malcolm Tucker

All through the “boom years” lending in the United kingdom escalated drastically with credit card use escalating a gigantic amount. A recent investigation has revealed that the ordinary debt is £8,500 per home. Despite this figure being worryingly high numerous experts believe that it could increase much more. With VAT increasing next year and the cost of living already likely to increase, many could find 2011 a difficult year.

Searching for debt help on line will return thousands of results. Evidently, there are numerous debt solutions on hand – some which will work out for you, others which wont.

Probably, you have heard of a debt management plan. Repaying your unsecured debts can be done through the use of a debt management plan. A debt management plan will facilitate you to pay back your debts at an reasonable level so supplying you with more breathing space each month. A debt management plan can be used as a temporary solution – to tide you over until your circumstances improves or it can be used until you are debt free.

Will a Debt Management Plan Provide Guidance?

You can get all the help and guidance you call for from your debt management plan company – this is just one of the benefits of using a debt help company. Along with executing your debt management plan, the firm will also assign you with a debt adviser who will be available to answer any questions you may have on the subject of debt and finance.
A capable debt adviser will keep you in the loop with the most up-to-date information on staying debt free, but here are our ways for you to stay debt free forever:

1. Organize Your Debts:  Listing your debts is a imperative part of any strategy to get out of debt. Glance through your receipts and verify your bank statements to get an idea of just how much you owe to everyone. Deciphering all of this data will let you see where you stand financially. Make certain that you make a note of whether the debts are unsecured or secured. A debt management plan can be used to tackle unsecured debts.

2. Prioritize:  Once you have got your list of debts setup the next step is to prioritize them. Work out which ones you should repay first. Debts which are secured against your home like a mortgage should be paid first, and then debts with high ranges of interest like credit cards can be handled with a debt management plan.

3. Endeavour and Save Money Where You Can: Shop around for EVERYTHING. Utilities is one area where enormous savings can be made. Changing gas or electricity dealer can mean crucial savings which can really add up. Try a different supermarket for your food or a different petrol station for your fuel and be alarmed at how much you can save.  You will discover a lot of sites on line which will help you compare utilities, insurance and different items.  If you are unable to pay your large credit card debs off then getting a debt management plan will allow you to pay back what you can sensibly afford.

Article Source: http://www.articlesbase.com/debt-consolidation-articles/is-it-ok-to-use-a-debt-management-plan-to-get-free-of-debt-3873462.html

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20 Responses to “Is it OK to Use a Debt Management Plan To Get Free of Debt?”

  1. OOHLALA says:

    i am in like over $30,000 debt. is there anyway i could make money with out really budgeting? keep in mind that i own a store, so i have to buy items for it everyweek.
    oh yeah. and theres a baby in my family too. and ive previously owned another store.

  2. DoingtheRightThing says:

    I would seek a financial professional. I met with a Primerica representative and they help me get out of debt. There is no fee to see them and they gave me a free financial needs analysis. Since they don’t charge clients anything, they do ask for referrals, which I had no problem with.

  3. mohamedzahir1976 says:

    IM looking for a good company that can help me out with my debts. I have over £10000 worth of debt to different things like credit cards and unsecured loans. Does anyone know of a company that could help me out with either a loan or a debt management.

  4. GaryBillenge says:

    Ive mentioned this before on one of these threads i used a company called Morrison Clarke (www.morrisonclarke.co.uk) and they offer various financial services. They helped me obtain a loan when i had hardly any income. I think they also offer Debt Management aswell. you can fill in a form on their website and they will give you a call back. Hope this sorts your problem out.

  5. admin says:

    Hi, I need help on this finance question, any suggestions would be greatly appreciated! Thanks!

    P Airlines currently has 25000 shares outstanding, selling at $80 per share. Its 8% perpetual debts have a par value of $800,000 and are trading at 125. Earnings before interest and taxes is $540,000 forever. The company is considering new issue of perpetual debts of $1000,000 to buy back its stocks. The new debts will have the same yield as the existing debts. Tax rate 30%

    Debt equity ratio after new debt issue?

  6. admin says:

    Hi , I just hate paying taxes. This time of year really irritates me! They (the IRS) always seems to have a new rule that makes me pay more taxes. It stinks! So I got a bit aggressive and discovered some software that has been a huge help to me. The VIP support that came with it is even better – I am already saving many more times the price of the software in tax savings! I am very excited! It is called: The Renaissance Goldmine of Brilliant Tax Strategies for Real Estate Investors. You might want to check it out at: http://www.goldlynxllc.com/audit-proof-taxes/ and see if it is something that might help you out too.
    Hope this helps a little.

  7. admin says:

    If there is a debt on a property owned by a person who is now deceased, how can the debt be collected if the executers do not issue their probate?

    The executers have been asked to pay the debt however because they are not issuing their probate I cannot claim the money owed to me from them. It has been quite some time since they were asked to pay the debt. Any advice on how I can get my debt.

  8. JamesE says:

    If you are in the US the executors have a time limit to execute the will. I would speak with someone at the Register of Wills in the county where the will is registered. I was an executor once in Maryland I had one year to fulfill the will but I did have the option to petition the court for a 6 month extension.

    Wikipedia Probate excerpt:

    “After opening the probate case with the court, the personal representative inventories and collects the decedent’s property. Next, he pays any debts and taxes. Finally, he distributes the remaining property to the beneficiaries, either as instructed in the will, or under the intestacy laws of the state.

    A party may challenge the probate, either by petitioning the personal representative or the court. If the claim is rejected, the claimant may file a lawsuit to prove the claim. Such challenge may force the court to scrutinize the probate in further detail.

    The personal representative must understand and abide by the fiduciary duties, such as a duty to keep money in interest bearing account and to treat all beneficiaries equally. Not complying with the fiduciary duties may allow interested persons to petition for the removal of the personal representative and hold the personal representative liable for any harm to the estate”.

  9. dnzndams425 says:

    How was debt and debt remission used by incoming kings to consolidate their power? Why was this practice so important? What kinds of things do politicians promise today analogous to the practices of old? What is the 21st century “debt remission?”

  10. Guest says:

    lol u have western civ at cw post???

  11. admin says:

    Obama wants to raise the debt ceiling. Republicans do not want to raise the debt ceiling. If Republicans raise the debt ceiling why vote for them? If Obama does not raise the debt ceiling why vote for him?

  12. admin says:

    NO.
    The debt limit will have to be raised……everyone knows that. It’s the cuts that need to be made (so that hopefully this will be the last time) that they differ on. Obama wants minimal (drop in the bucket) cuts. The Cons want meaningful cuts that will make a difference down the road.

  13. hayatik says:

    I need help with paying off my credit card debts. There are so many debt reduction /consolidation agencies that I don’t know which one is good/authentic and will give the best rate (discount). For those who had gone through this experience, please advise. Thanks.

  14. admin says:

    I wouldn’t use any of them they are rip off artists. They take your money and do nothing, been there done that. Go to Consumer Counseling, in every city or county, it is free, non profit and they don’t charge but they will contact all the places you owe money to and get you with lower payments and great ways of getting out of debt !! They are well known by all companies and acknowledge Consumer Credit Counseling as serious and good to work with .

  15. SpacedFrehley says:

    By raisilng the “debt ceiling” is that the same as saying “we’re not in debt’ until we reach X amount of debt? What does China and the other countries think of America raising the “debt ceiling”? Is raising the “debt ceiling” a way of putting off the American debt until the next Presidential election? Bush raised the “debt ceiling 7-8 times” and we still inherited a huge debt.

  16. Isa says:

    The debt ceiling is self-imposed. It’s more like telling yourself that you won’t accumulate more than $500 on your credit card than it is like your actual credit limit.

    Our actual credit is limited by our ability to pay our creditors’ interest back (our creditors, incidentally, aren’t some kind of world bank, but instead are millions of individual investors who buy bonds). Countries have credit ratings, as do currencies – if we started defaulting on our debt, investors worldwide would no longer consider it wise to buy bonds and currency from the United States, and we would no longer be able to spend into the deficit, since we would have nowhere to get credible money. (Deficit spending, contrary to what some incredibly idiotic pundits would have you believe, has nothing to do with ‘printing money’ in the United States.)

    There’s no set numerical limit at which point the United States’ credit rating suddenly collapses – it’s a matter of whether we can make good on our interest, not a matter of whether we have $10 trillion in our pockets (just like your mortgage – not having your house’s value in cash on hand doesn’t hurt your credit rating; falling behind on your payments would). The only concrete and immediate drawback is that the more we borrow, the more we have to pay in interest. Currently interest consumes about 7% of the federal budget.

  17. Where'smyscoobysnack? says:

    How to check to see if the debt is really legit? I know there’s a statute of limitations of 7 years that prevents debt collectors from contacting you but what happens to the debt after that time frame?

    Also, if you get a letter from a debt collection agency stating you owe a debt, how to prove that the debt is real and you do in fact owe?

  18. PooPooLaTrash says:

    Send a letter to the collection agency, certified mail, return receipt requested, asking for validation of the debt. Keep a copy for your records and also the green card the USPS will return to you showing the letter has been received.

    If the debt collection agency cannot verify the debt (give them 30 days), send them a letter stating that per the FDCPA (Fair Debt Collection Practices Act), the debt is invalid and to cease collection efforts. Send copies of your correspondence to the credit bureau along with a dispute of debt letter. Do all of this via certified mail, return receipt requested and send copies.

    Lots of detailed info here: http://www.creditinfocenter.com/rebuild/debt_validation.shtml
    Do not click on any of the ads on the linked page or fill out the “more info” form. Everything you need to know is already there.

    Sample credit bureau dispute letter here: http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre21.shtm

    You can pull your credit reports free at https://annualcreditreport.com (free reports every 12 months…more often than that and you will have to pay). Make sure you get the report that contains copies from all three bureaus.

    ———————-
    Mo is right in that sometimes these debts turn into “zombie debt” (Google it) but by federal law, these zombie debts must be removed from your credit report if the statute of limitations for collection has passed. If you don’t pay, it will be up to you to monitor your credit report and file disputes every time the debt shows up based on that. This occurs even when people have had debts discharged in bankruptcy. Even settling a debt for less than the original amount owed can lead to zombie debt occurring on the difference between the charge off and the settled amount. And zombie debt can arise from something that appears on your credit report through no fault of your own …fraud, identity theft, etc. (read more here: http://articles.moneycentral.msn.com/SavingandDebt/ManageDebt/ZombieDebtCollectorsDigUpYourOldMistakes.aspx ). Practices like that are absolutely and positively against the law, but it’s up to you to monitor your credit reports and dispute every time it is reported.

  19. admin says:

    I was wondering what the debt limit is on enlisting in the air force. I know that they can deny someone for too much debt. So what is the max debt allowed?

  20. lconnor65 says:

    Air Force uses the “40 percent rule.” Any recruit who’s monthly consumer debts (not counting debts which can be deferred, such as student loans) exceeds 40 percent of his/her anticipated military pay is ineligible for enlistment

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