Free debt advice – explore the options
Many companies will charge a fee for debt advice, which isn’t necessarily the correct choice if you’re strapped for cash. You might think that its money well spent, investing in a solution for your financial worries. Whilst that might be true, if you’re serious about getting debt free, you should be cutting down on your outgoings as much as possible – making free advice the more attractive option.
There’s a wealth of free debt advice (money plans, managed bank accounts) around – through organisations, charities and online. You’ll be presented with a variety of options to choose from, but it’s important to explore the options and pick the solution that’s best for you. If you’re in a lot of debt, or if you’re finding it difficult to keep organised with your repayments, free advice could provide options to help.
One of the options you might be presented with is a debt management plan. These plans aren’t suitable for everyone, but if you find it’s suitable for you, they can help you regain control of your finances. The plans work out your monthly budget – your income against your outgoings, and reveal any monthly surplus you might have available. This monthly surplus can then be used to pay back those you’re in debt to – your creditors.
You’ll need contact your creditors and let them know that you’re using a debt management plan, and how much you can afford to repay to them each month. Some companies consolidate these debts, and pay each individual creditor on your behalf; however there is usually a charge for this service.
If you don’t have a monthly surplus available, a debt management plan won’t be the right option for helping you become debt free, but those offering free debt advice will be able to give you in depth guidance.
