Why is ‘debt’ a four-letter word? Because most people who propose different methods of being able to pay off your debts have an incredibly difficult time stayed afloat and managed to do so.
First steps to do
The answer for you may be in debt counseling. Debt counselors can not only provide you with strategies for repaying your debts but also help you to discover ways to take back control of your finances. The benefits include being able to effectively manage your debt and so keep your credit rating relatively healthy for the long term.
How can a Debt Counsellor make sure that you’re going to get the best advice for your circumstances? Here is a shortlist of some of their essential requirements that must be met before any debt counseling can be undertaken:
1. For you to consider getting any sort of debt counseling – you must have at least £5,000 or more of unsecured debt
2. You must be able to afford the fees and the payment plan
3. You must have a regular source of income
4. You must need to identify who you’re dealing with
5. You must be committed to repaying your debts and the debt counseling service needs to be able to help you do that every day
What should you do next
Once you have each of these 5 requirements met, you can be confident of having a plan of debt repayment that can get you back on track to a sound financial position. The last two points are critical. You do need to be committed to repaying your debts as this is the only way to have a real impact on your debt.
A word of warning though – you may initially see that a debt counselor may require that you meet several of the items above. However, even if you can’t quite get all of them, the counselor should be able to help you get the ones that you can. This might result in you paying a little more in the long run. However, with professional help, you get to which you can afford if it means holding the door open for you to be able to pay it all back that you have started replacing your debt.
Now we all agree that this sounds a lot more like a debt counseling service than a payday loan lender, right?
A good debt counselor should be able to do the following:
- They understand that you’ve gone and shot yourself in the foot by having to borrow more money than you could afford to pay back – as a result of your existing bad credit score.
- They understand that just making minimum payments on your debt will not eliminate your debts for many years to come.
- They understand that you need options that will get you out of debt relatively quickly, having established a mechanism to enable you to take control of and eliminate your debts. This point is so crucial because the quicker you can get out of debt, and the fewer bills you have to worry about, the better off you’ll be – both from a personal and family perspective.
In summary, you absolutely must not hesitate to call upon a debt counselor if you or a loved one is in financial trouble. Such an experienced professional can help you with so many things including handling creditor harassment.
After all, how are you going to grab a stick and climb a mountain if you have fallen off a roof?
You aren’t – so don’t even try.
Working alongside you at the counseling service can have a major impact on your future credit rating because of the amount of credit that you will need to rebuild your credit over a reasonably short period.
So are you in need of a Payday Loan? How will a counselor help you in losing those high-cost store cards and stay out of debt for the long term?
If you require the sum to help you maintain credit and peace of mind, then it’s worth looking into. Loan companies will then feel more than comfortable to loan you the amount needed to be based upon cash-flow and debt repayment information, versus providing ‘Loinsurance’ type credit.
So for today, forget about getting a Payday Loan and save the money – that you can afford to offer up the maximum amount on your merit. If you need a payday loan, they are only going to lend you ‘as much as your next payday; in most cases, this will only be a couple of hundred pounds.
And in regards to getting debt advice, I understand that not everyone feels comfortable talking about their financial matters with a stranger. And truthfully, a stranger giving you advice about your money doesn’t seem to be any better than a stranger giving you hed Sphere Ngo.
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