Debt In A Modern World » Debt Management

Debt Management and My Credit Rating?

Nigel — Wed, 03 Mar 2010 20:47:00 +0000

Credit rating, this is a biggy. I have spoken to so many people in the past about using a Debt Management programme and when you get to how a credit rating can be affected, you can hear the other person back off and loose interest within seconds. Of course I understand the importance of a credit rating, how it can affect so many facets of our lives and just how hard it is to reach the big numbers at the top, and then to be told that to help them I am going to have to affect it in an adverse way – that’s a bitter pill.

But and this is the mother of all but’s…….with the best will in the world it’s impossible to have it all ways, something has to give. I remember a recent client explaining that three of her seven debts are with debt collectors, two missed payments to council tax and rent payable at the end of the month with little to pay it with if creditors get paid what they requested……….now, a 15 minute chat and financial review later I found that I could free up funds for the council tax arrears, get payments to her creditors and there would be money left for her rent. Great…”is this something that interests you” I ask, “what about my credit rating” she asks. As I said before, I really do understand how important it is but she went on to explain that what she really wanted was a loan and didn’t want her credit rating affected. The Lady didn’t use debt management in the end and I suspect that having debt with collection companies, her credit rating was credit worthy. I hope all went well for her in the end.

I think the point I am getting to is that we have to remind ourselves that sometimes we have to make hard decisions in order for life to get better, the Lady I spoke with hadn’t checked her credit rating and yet she still believed that the miracle loan may happen, if it did, it could be more borrowed money with interest to be paid rather than dealing with what she had.

Debt Management. Does it work?

Nigel — Fri, 29 Jan 2010 09:45:09 +0000

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.

Debt in a not so changing world

Nigel — Fri, 08 Jan 2010 20:02:20 +0000

Debt in a not so changing world. Everything around us changes so fast, science and technology, breakthroughs in medicine and one of the fastest and largest areas of interest today is information technology. But as fast as we evolve in areas that change us and bring us together, the credit that we all need in one form or another to bring about these wondrous leaps forward can easily turn to debt. The reasons for the lender changing the tag above your name from in ” in credit ” to ” in debt ” really doesn’t matter, but what does matter is the way the holders of the purse strings deal with us, the people who attract us with the glamorous and glittering adverts showing the change of life, how interesting and attractive we can become, change…….no glam or glitter, no more pleasantries……we find that we are now dealing with a system that hasn’t changed for a century. We are now faced with demands with no real help or assistance, the one single feeling that most would apply is that of injustice………..Our world is changing, shouldn’t theirs?