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If you are already on a debt management plan or have been repaying your debts on an agreed instalment plan with your creditors for a while, you may be able to negotiate a settlement figure which can save you lots of cash.
Remember, once you reach a settlement figure, you may be tempted to pay off the debt settlement amount by the taking out a credit card or a personal loan. Repaying debt with more debt is not a viable solution to debt problems.
The best advice is to only pay off what you can afford and don’t be pushed by creditors. They cannot legally enforce any action if they are already in an instalment plan with you. You will need to be hard nosed when it comes to negotiating with creditors as they are trained to recover debt. It is easy to fall into their pressure and you may be tempted to agree a settlement which is more than what you can afford.
If you cannot agree a settlement figure this time round, you will most likely have another opportunity to do so in future so patience is a money saving virtue when it comes to debt reduction.
The best advice is to only pay off what you can afford and don’t be pushed by creditors. They cannot legally enforce any action if they are already in an instalment plan with you. You will need to be hard nosed when it comes to negotiating with creditors as they are trained to recover debt. It is easy to fall into their pressure and you may be tempted to agree a settlement which is more than what you can afford.
If you cannot agree a settlement figure this time round, you will most likely have another opportunity to do so in future so patience is a money saving virtue when it comes to debt reduction.
Debt reduction can usually be done directly with creditors or through a debt management company who are professional in this area and there are several debt management companies in the market who can help with with this. However they may charge a substantial commission as fees but can help you wipe off 10% to 40% of your remaining debt balance.
Usually approaching a debt management company may be a feasible option if you have debts in excess of £15,000. With a larger balance, the savings you make from debt reduction are much larger and it is worth paying the fees or commission.
You will be surprised to see how creditors react when it comes to settling a debt balance and asking for a discount!
Usually approaching a debt management company may be a feasible option if you have debts in excess of £15,000. With a larger balance, the savings you make from debt reduction are much larger and it is worth paying the fees or commission.
You will be surprised to see how creditors react when it comes to settling a debt balance and asking for a discount!
Debt reduction