A Debt Payment Plan Can Really Help With Dire Financial Situations

Written by admin on April 16th, 2011

If you are one of the many people in the current financial climate that is having difficulty managing your money and the amount that you owe is starting to spiral out of control then you need to do something about it sooner rather than later. Choosing to leave the problem alone in the hope that things will get better is a sure fire way of getting yourself into even more trouble. If you are struggling financially then a debt payment plan may well be a very good way of getting your situation sorted. There are a number of positives that can be associated with getting set up in one of these arrangements.


These plans involve an insolvency practitioner assessing your current situation to work out how much you can reasonably afford to pay each month. They will look over all of your creditors and come up with a combined monthly sum that you need to pay. This sum is paid to the company and they will then split the payment between your creditors so that they all receive something each month. The lump sum that you end up paying will be lower than the previous combined totals so straight away you are saving yourself money.


These agreements will usually be set up over 5 years and when that 5 years is up you will be free of your debts and will have only had to pay off a percentage of what you actually owed. Your creditors do not have to accept the terms of the arrangement but usually the insolvency practitioner will have made a fair enough offer to them so they will accept. Once you are set up on a debt payment plan, you should not be contacted by any of your creditors and any interest or late payment fees will also usually be stopped.


All in all, if you are finding it increasingly difficult to manage your monthly costs then you need to do something about it. It is advisable to contact a financial advisor to get professional advice on exactly what is the best option for you.

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