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September 24th, 2009:

Control Your Debts With Debt Management

Without doubt getting your creditors to agree to reduce monthly payments can be hard as the creditors are often attached to the word no and ofcourse to their profit margins. But to make your creditors agree is not impossible. A Debt management solution through a good debt management company can often help. The advisor at a good debt management company will take time and trouble to convince the creditor that there are valid reasons why you are unable to make full repayments and that you are trying to control your debts with good debt management.
The following are ways by which a good debt management company can help you :-
1. Go through your income and expenditure completing a full fact find.
2. Agree an affordable payment with you that is comfortable to make each month.
3. Prepare a financial statement for your creditors, which is then sent to them so that they are fully aware of your situation.
4. Negotiate payment rates with your creditors so that those who are initially uncooperative are brought on side.
5. Negotiate for interest charges and late payment fees to be frozen.
6. Distribute payments on your behalf.
One more thing you may remember while taking debt management solution is that you can cancel the agreement and be entitled to a full refund of money however this is only if the cancellation written notice is received within 7 days of making the agreement. This is known as cooling off period after which normal debt management solution terms apply.
Once the debt management solution programme is under way you can stop the agreement any time and no penalty is added to it. As such there is no minimum or maximum time contract. The service can be used as long as you want until you feel confident to deal with your creditors again.
Of course no debt is small if you cannot afford it. But debt management solution is helpful for those who have debt amounts typically in excess of two thousand pounds with more than one creditor. Debt management solution is applied to unsecured debts and not to secured loans or utilities, CCJs, mortgages etc which you continue to pay. In not maintaining payments at the agreed level and on the agreed dates your creditor may with draw his support for the plan. But as said prevention is better than cure should be the motto of your clearing debts. Controlling your debts with a debt management solution not only mends your debt but also improves your credit history providing of course that you do your bit and keep up the payments each month.

Geoff Hibbert has over 30 years experience at the forefront of the uk finance markets
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Get Out of Debt, Step by Step

If you’re one of the millions of people plagued by debt and struggling just to keep up with your credit card payments and keep your bills paid, you can change your situation. You can get out of debt. It will take time and determination, but if you follow these steps, you will become debt-free.

1. Cancel your credit cards. Call your creditors and tell them that you want to cancel your account. You will continue to get statements and be liable for the existing balance, of course, but you will no longer be able to use the cards to incur new debt. If you have a card with available credit, and you feel you need it for emergencies, freeze it inside a block of ice in the back of your freezer so you cannot use it impulsively.

2. Track your spending. This may be the most important thing you can do to change your spending habits. Write down every penny you spend, on anything. Carry a small notebook or a piece of paper in your wallet, and write down any money that leaves your hand, and what you spent it on. The simple act of recording your spending will help you become more aware of how you spend money. And this will help you change your spending habits.

3. Cut back on personal spending for a time to pay off debts. You will need to both live within your means, and find money to pay off your debts. Aim for not only not debting, but having at least $25 per month to pay on your debt. Write this into your personal budget and find a way to do it.

4. Pay more than the minimum on one account, while paying minimum on others. Make the minimum payment on all accounts except the account with the lowest balance. Pay as much extra on that account as possible.

5. When one debt is paid off, pay that entire amount on another debt. Once you’ve paid off your lowest balance, take everything you were paying on it—the minimum payment as well as the extra payment—and apply it to another account.

6. Pay off higher interest debts first, except—start by paying off lowest balance for morale. Many people suggest starting with the account with the highest interest rate, but by starting with the lowest balance, you can see real results very quickly. You can then start paying off your higher-interest accounts. As you pay off the accounts with high interest, your overall debt will increase less quickly, and you can make progress in paying them off.

7. Avoid incurring any new debt. This is very important. While you are working to get out of debt, you absolutely must not take on any new debt. This may be difficult in some cases, but if you are currently having debt problems, another loan is not going to help. You need to find a way to get out of the debt.

8. Start a savings account for a car or other major expenses. As soon as you can, start putting a few dollars a month away to save for major expenses. Increase this as often as you can. This account will be there when you do have a major expense, so you don’t have to go into debt again.

Getting out of debt takes time and effort, but becoming free of your debt and having a good financial picture is one of the best things you can do for yourself and your family.


Read the blog for the latest tips and information on debt reduction and how to get out of debt.
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Tips to Minimize Credit Card Debt

Credit card debt is the Number One of debt issues that is not just affecting American households but worldwide in general. Many people are drowning into credit card debt and find themselves hard to get rid of it. If you are in the same situation, praying and hoping for helps from money falling from sky will not save you from continue drowning in the sea of debt. You action to start a debt elimination plan in place is your only way to save yourself from your debt issue. Here are 2 tips to minimum your credit debt that you should consider in your effort of get rid of debt.

1. Don’t Add New Debt While Clearing Your Old Debt

Every one likes to use credit card for purchases because it’s convenient and easy, until you forget about how much money you have in you account and overspend your money. When credit card bills come, only you realize that you have not enough money to pay the amount stated in your credit card statement, you have no choice but paying minimum due to fulfill the credit card agreement requirement. Later, you go out from shopping, again you forget about your financial status and spend again with your credit card.

If you continue this spending behavior, your credit card debt will continue to go up instead of reducing the amount. There is no way to get rid of you debt if you don’t get rid of you credit card first. Hence, if you find that keeping away your credit cards are too hard, take a dramatic action by terminating all your credit cards and exchange them with debit cards so that you only can spend up to the limit where your checking account allowed. Before you call up the banks to cancel your credit cards, read the fine print of your credit card agreement first because some banks will increase your credit card interest rate if you cancel their cards with balances.

The first action to get rid of your credit card debt is to get rid of your credit cards so that you can avoid from adding new debt into your existing debt amount.

2. Minimize The Interest Rate & Avoid The Finance Charges

Credit cards carry different interest rates. If you pay your credit cards’ balances in full each month, then, you don’t really need to care about the interest rate. But, now you are in debt, every extra of interest rate will make you pay more. Hence, list down all your credit card debts and their balances. There are a few options that you can use to minimum the interest charged to your debt. Credit card debt consolidation into few cards with lower interest rate is one the options. Another way is getting a debt consolidation loan which has lower interest rate to pay off your high interest credit card debt. After the credit card debt consolidation, your credit cards now have a full credit limit again. Don’t let yourself be trapped into new debt with these credit cards again.

By combining all your debts into single debt under debt consolidation process, you will have a better focus to pay of your credit card debt and transferring from high interest debt to lower interest debt will save you a good amount of interest. With debt consolidation, your overdue debt will reset back to current and help you to avoid paying the overdue or delay finance charges.


Credit card debt can be built up really fast, but it won’t go away that quick and it won’t go away if you have done nothing to resolve it. The first step of get rid of your credit card debt is reducing it by avoiding new debt added to it and minimum the interest from rolling up your debt.

Cornie Herring is the owner of Visit Cornie’s website to see more information on Debt Reduction and Debt Repayment.
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