An Easy Way to clear your Debts

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michael123

New Member
Jul 26, 2008
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Hi all !
Credit cards seem to have become a necessity to make any online transactions.Managing credit card bills are not easy and the situation gets worsened if one does not make proper plan to pay the debts regularly. It becomes hard for anyone to pay the credit card bills on time if the bills have been accumulated for the long period of time. Burden of heavy and multiple bills is not easy to bear. Sometimes it leads to mental stress and aggravates financial problems.Various financial companies are engaged in offering services related to debt consolidation and credit card bill consolidation.
Bill consolidation is quite easy for the people because in spite of paying all the bills separately they are to pay just one installment every month against the loaning amount. This installment is designed according to the customer’s convenience.
One should carefully select the company that suits to his budget and repayment options. There are various online companies operating in this field and should carefully read their policies and plans before getting involved with any companies to pay off their credit card bills.
 
Tony

Tony

What Consumer Founder
Apr 7, 2008
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Bolton
I think these types of debt consolidation loans should be avoided where possible, as they WILL not save consumers any money. You will be paying more for having one monthly payment rather than many. I really don't know what the attraction of this kind of arrangement is...
 
W

Witch consumer

Moderator
Sep 8, 2008
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Debtors retreat
I'm not sure whether this post refers to debt consolidation loans or to debt management companies - who take a monthly amount from you and split it between your creditors - while pursuing either you need to be very careful.

debt consolidation loans are generally a bad move when there is another alternative, what you have to watch out for is debt management companies who charge you, or take a percentage of what you pay monthly to manage your debt for you.

PayPlan will arrange a debt management plan for you and negotiate with your creditors without fees. They work within quite strict procedures and will only take on your case if you have a realistic chance of paying off your debt within 5 years.
 
G

GlasgowGirl

Facilitator
Jul 22, 2008
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The attraction of consolidating is that it appears simpler - you just make one payment every month rather than having to find the money to pay multiple creditors. The catch is, of course, that you end up paying off far more for longer than you otherwise would have. I have heard others say that the best strategy for paying off substantial debt is "snowballing" - you work out which of your debts is the most expensive and put as much money as you can towards paying that off first. Once that's paid off you do the same with the next most expensive, and so on until you're debt-free.
 
TVDinner

TVDinner

New Member
Sep 28, 2008
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consolidating ONLY works if you dont then run up the cards you paid off again. MANY MANY people end up doing that and double their bebt, or worse.
 
C

Cat

New Member
Feb 14, 2009
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Hey

Yes I fell into the debt consolidation and credit card trap and am now in a Trust Deed so beware if thinking its an easy option
 
Tony

Tony

What Consumer Founder
Apr 7, 2008
18,307
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Cat said:
Hey

Yes I fell into the debt consolidation and credit card trap and am now in a Trust Deed so beware if thinking its an easy option
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Sorry to here that Cat. Not 100% - what is a Trust Deed?

Tony

BTW welcome to the forum
 
Tony

Tony

What Consumer Founder
Apr 7, 2008
18,307
3
38
Bolton
Cat said:
Hey

Yes I fell into the debt consolidation and credit card trap and am now in a Trust Deed so beware if thinking its an easy option
Click to expand...
Sorry to hear that Cat. Not 100% - what is a Trust Deed?

Tony

BTW welcome to the forum
 
K

kris1anne

New Member
Jan 29, 2009
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I actually ended up in this situation when I was younger and actually found that if you contact your creditors in writing yourself, detailing your financial situation and offering a certain amount with direct debit details. Stick to the arrangements and it actually looks far better then if you go through an IVA. Normally, especially at the moment, they want to help so if you call them and tell them this is what you are doing, provided you stick to it, they have to accept it.
 
Z

ZacColbert

New Member
Jan 29, 2011
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Another good way to build up a better credit score is to get a prepaid credit card - you're guaranteed to be approved and it comes with a bunch of other benefits like online payment protection.
 
terry

terry

New Member
Apr 28, 2011
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what is a Trust Deed?
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Scottish version of an IVA. Lower debt level is allowed and also term can be as little as 3 yrs although they scrutinize things like equity and assets much more.
 
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