Debt Management. Does it work?
Posted by Nigel on Jan 29, 2010 in Debt Management Today |
Debt Management has been around for quite a few years and has been kept as one of the industries biggest secrets by the creditors. As long as someone can demonstrate to the creditor just why they cannot afford to repay the debt at the agreed rate, the creditor should accept the reduction in payment. Many people in the UK through no fault of their own, cannot afford to repay their debt, mounting interest and charges place on the accounts then result in the debts spiralling out of control. I just don’t understand why the creditors cannot review their policies so their clients remain their clients rather than accounts defaulting and being sold to debt collection for a fraction of the value. Both the creditor looses and the client looses.
Hi there
I struggled for over two years after my marriage broke down, I have two children and had to stay at home to look after them. I contacted all of my creditors and tried to make arrangements with them which they agreed to do which I was really happy with. After a few months I was contacted by my creditors one after the other insisting that increase my payments which I did, I couldn’t afford it, but I didn’t know what else to do. It wasn’t long before I realised that my children where the ones who were missing out, the extra money I was paying to the Bank and Credit Cards was the money I was using to take my children out with and the odd treat or two. I know it is questionable whether I should spend money on them instead of paying it to the debts but should they go without because of our relationship breaking up. For the first time I approached a friend and explained what was happening, he told me about his situation and that he was with Welcome Solutions on a debt management plan. I approached them the next day and was really sceptical about what they were saying but having no choice I proceeded.
Nearly 12 months later I cannot believe the difference being on the debt management plan has made to me, I can now concentrate on my children who are my life and Welcome Solutions deal with everything to do with my creditors and debts. I know this sounds a bit corny but they really did make a difference for me.
I have been on a debt management plan for two years now and i don’t know what i would have done without it. Everything went wrong for me after getting divorced three years ago, i had a pile of letters from people demanding money and the bailiffs had been round about the council tax that i had missed. I was working but i could not make ends meet, i think the worse part of being that situation was that the interest and charges was making it worse each month and there was nothing i could do to stop it. They should teach ‘What to do when you get into debt’ at school.
Anyway, I don’t want to go on about how good life is now (it is) but i would like to let anyone who is thinking about debt management and is sceptical know that it worked for me…..pick the right debt management company, make sure you listen to the advice and just go for it.
Hi there Shybunny
I am pleased that everything has worked out for you, I am a great believer in Debt Management , done in the right way it can be a great help either short or long term. You didn’t say which Debt Management Company you are with but give them a plug next time you are back.
Nigel