In the UK more and more people are finding themselves in a money trap that can seem impossible to get out of. The current worldwide financial crisis has seen the cost of living rise dramatically and incomes at best virtually stay the same or as in a lot of cases salaries or hours are reduced.

If your salary has dropped, been frozen or you have lost your income you will probably be in a state where by you can no longer service your credit. The situation doesn't stop there, interest rates keep mounting, and charges for missed or late payments soon see your debt increase. There are solutions out there you just need to see which one will get you out of debt as quickly as possible, which will save you the most money on interest, charges and potential reduction.

Options Available

Debt Management- Settlement- Bankruptcy

When people fall into debt the stress and strain can have a very detrimental impact on your life as a whole. Some people get to the point and think "I can take this anymore; I'm going to go bankrupt". This is a solution but probably the worst one available. Bankruptcy has a long lasting ( potentially permanent) negative effect on you credit rating and can make simply things like opening a bank account difficult never mind when you are back on track and want to get on the property ladder, even renting can be difficult.
One option that people normally look at is a management solution. There are two types of debt management plans, the first being a program which has a fee and been added to the balance. In most case's the interest on the debt is frozen and you pay a lower set fee until the debt is cleared, so in essence you are paying the full debt plus a fee over a much prolonged period.

The second type is where there is no fee, the management company usually get paid by your creditor. The interest is normally frozen so you actually pay the full amount of what you owe with a lower monthly fee again over a prolonged period until the debt is settled.
Is relatively new in the UK but becoming quite popular is debt settlement company you look at your disposable income i.e. how much you have left after paying all necessary bills. They will negotiate and make an offer to your creditors on your behalf that you can afford.

The reason the creditors agree to this is simple, if people go bankrupt the creditor will receive nothing so it is in there interest to accept something rather than nothing.

So You are now aware of the option available to you

Related Links

http://www.how-to-become-debt-free.co.uk/
http://www.settle-my-debt.co.uk/
Mr. N Brister
[email protected]