- Posted by: Administrator
- Category: Finance
When it comes to clearing your debts, you want to do so as quickly as possible. This means your mind can be at ease and you will have freedom to go forward to plan your life without the shadow of debt.
If you have a small amount to pay or are towered over in debt, this article contains some great information to help. You’ll discover a variety of ways you can clear your debt, so you can see which will work best for you.
BEST WAYS TO CLEAR YOUR DEBTS
- A DMP (Debt management plan)
This involves you paying back what you owe in a comfortable, evenly paced way. You can coordinate how you wish to pay with the company you are paying the debt off with. Usually, these plans are consistent with monthly installments that tally up to your overall amount over time. This way, you can go about paying your other bills and living your life as normal. These are great for high-street store cards or smaller loans.
- Debt relief
If you’re on a lower yearly income, you may be eligible to have your debts completely frozen if your situation doesn’t change. You will have to wait a certain period of time, usually a year, after which you will know if it can be relieved.
- Voluntary arrangements
You can pay your debts back at a pace suitable for you until the paying-back period comes to an end. Anything you don’t manage to pay off at this state will then be written off. You will normal enter into a signed agreement before you go ahead with this option.
- Declaring yourself bankrupt
If you want to turn over a new leaf, you can always declare bankruptcy. This means that all the money you owe is completely written off. You should be aware however that the assets you own will be given to your debtors to contribute towards the payments.
GETTING ADVICE FROM DEBT MANAGEMENT COMPANIES
When you are on the way to recovering your debt and paying off what you owe, it’s good to get advice. The professionals know what’s best to do in your situation and can direct you down the right avenue for you. The important part is choosing someone you can trust.
Now you have some more options, it’s a good time to review them and start working on your plan of action. Repaying your debt sooner rather than later will leave you with more freedom and less stress.
SOURCE: FREE MAKE MONEY ADVICE