Best Debt Management Plans

Paula Bryan, 24, a full-time economics student, has built up £15,000 in debts. And she is unable to keep up with her loan repayments. “When I took up my full-time education program, my bank convinced me to take out a £8,000 education loan. I was already under debt but I had hoped to be self-employed while studying, however, it did not work out. Now I have not paid my payments for months. I have even started getting threatening calls from the debt collectors,” exclaims Paula. Paula doesn’t have any assets for bailiffs to seize.

With a small income that she recently started earning from a part-time job, Paula wonders if bankruptcy is the only option left. Experts from RedHouse Debt believe that while bankruptcy will free Paula from debt, it will severely affect her credit score as well as future employment opportunities. “Bankruptcy is a serious debt management arrangement and should be entered into only after a careful and thorough evaluation of the alternative debt management plans. Moreover, bankruptcy is costly – she would need at least £510 to cover costs on the day she goes bankrupt,” says debt expert from RedHouse Debt.

If you are on the hook of debt and can’t even pay the minimum paybacks then don’t get disheartened – RedHouse Debt provides best debt management plans that can help Paula and many other indebted people like Paula become debt free. RedHouse Debt can negotiate with your creditors, explaining them your financial situation and ability to repay back and asking that all interest and associated charges be frozen. By virtue of their good relationships with RedHouse Debt, the creditors are more than likely to agree for a debt settlement or a debt consolidation plan.

Debt settlement involves settling the total debt for less than what you owe for an upfront fee. And Debt Consolidation requires you to make one lower and affordable monthly payment until you are debt free. Both the options relieve your from the trouble of dealing with the creditors and puts a stop to the harassing calls from the debt collectors. You can enroll in either of the plans depending on your financial position by logging on to redhousedebt.co.uk. It is important to note here that neither of these two options is legally binding.

Another alternative, which is viewed more favorably than bankruptcy, is IVA – it is a legally binding agreement through which you can make monthly contributions towards your debt for an extended period – typically, five years, after which you are considered debt free even if you haven’t repaid the full amount of debt. The interest charges freeze the day IVA commences. And it also stops the harassing calls from the creditors. Thus, there is always scope to resolve your situation with a good advice and best debt management plans. The only thing required is a quick action from your side!