pay off credit cards
It is essential that you ask if all of the fees are covered in the quote.
Interest rates and late payment fees only dig borrowers more into debt. What many consumers don't know is that they can make an agreement with their creditors and lenders to lower their monthly payment; most of the time, this monthly payment includes all of their debt which is lumped together. This is called, debt consolidation, there are many ways to go about lowering your monthly bills.
Debt Consolidation Services
There are thousands of debt management services, but all are not created equal. It is important to find one that also has their own set of attorneys. Attorneys that are familiar with the law can make the laws work in their client's favour. There are laws that protect borrowers from unethical practices on the behalf of creditors and financial institutions. Some of this unethical behaviour includes charging enormous interest rate and late fees, which can make it almost impossible for the debtor to pay off what they owe.
A lawyer will work out an agreement with creditors based on the borrowers overall income and expenses. The attorney will look closely at what their client is able to afford. In some cases, they will also be able to decrease a portion of the overall debt. In return, the creditor will ask that the consumer pay a monthly bill (on a set schedule).
The attorney will also be able to protect the debtor's personal property such as cars, homes and other assets. Charities like the CCCS do not charge a fee to help put a DMP in place for you.
This is therefore initially a very attractive option. However, many of the services are provided on line and you might struggle to speak to an advisor in person. As a result mistakes can be made and a poor solution implemented which will not resolve your problem.
On the other hand, if you use a commercial debt management company, you will always speak to an advisor and should get a more personal service. However, you will be charged a fee for this.
There is no evidence that a using a charity to implement a DMP will give you any advantage in terms of getting interest and charges frozen or preventing further action being taken against you such as a charging order against your property.
In fact, the commercial debt company may be able to do better in this area as they have more time and resource to be able to keep working with your creditors until an agreement on interest is reached.
The IVA option
If you decide than an individual voluntary arrangement (IVA) is the right solution for you, you cannot implement this by yourself. You must use a licensed insolvency practitioner (IP) to help you.
Generally you get access to an IP by speaking to a reputable debt management company who will first check that an IVA is suitable for you.
You will not be charged a direct fee to complete an IVA. Your IP will be paid fees late but these come out of the payments you make and you do not have to pay any extra to cover them.
The fees charged are regulated by the creditors and will generally be the same whichever IP you choose.
pay off credit cards, debt management company, debt management company
Interest rates and late payment fees only dig borrowers more into debt. What many consumers don't know is that they can make an agreement with their creditors and lenders to lower their monthly payment; most of the time, this monthly payment includes all of their debt which is lumped together. This is called, debt consolidation, there are many ways to go about lowering your monthly bills.
Debt Consolidation Services
There are thousands of debt management services, but all are not created equal. It is important to find one that also has their own set of attorneys. Attorneys that are familiar with the law can make the laws work in their client's favour. There are laws that protect borrowers from unethical practices on the behalf of creditors and financial institutions. Some of this unethical behaviour includes charging enormous interest rate and late fees, which can make it almost impossible for the debtor to pay off what they owe.
A lawyer will work out an agreement with creditors based on the borrowers overall income and expenses. The attorney will look closely at what their client is able to afford. In some cases, they will also be able to decrease a portion of the overall debt. In return, the creditor will ask that the consumer pay a monthly bill (on a set schedule).
The attorney will also be able to protect the debtor's personal property such as cars, homes and other assets. Charities like the CCCS do not charge a fee to help put a DMP in place for you.
This is therefore initially a very attractive option. However, many of the services are provided on line and you might struggle to speak to an advisor in person. As a result mistakes can be made and a poor solution implemented which will not resolve your problem.
On the other hand, if you use a commercial debt management company, you will always speak to an advisor and should get a more personal service. However, you will be charged a fee for this.
There is no evidence that a using a charity to implement a DMP will give you any advantage in terms of getting interest and charges frozen or preventing further action being taken against you such as a charging order against your property.
In fact, the commercial debt company may be able to do better in this area as they have more time and resource to be able to keep working with your creditors until an agreement on interest is reached.
The IVA option
If you decide than an individual voluntary arrangement (IVA) is the right solution for you, you cannot implement this by yourself. You must use a licensed insolvency practitioner (IP) to help you.
Generally you get access to an IP by speaking to a reputable debt management company who will first check that an IVA is suitable for you.
You will not be charged a direct fee to complete an IVA. Your IP will be paid fees late but these come out of the payments you make and you do not have to pay any extra to cover them.
The fees charged are regulated by the creditors and will generally be the same whichever IP you choose.
pay off credit cards, debt management company, debt management company
lelandcarter511 - 21. Jul, 11:13
