People often do not understand how the debt help market works, leaving them at risk of being taken advantage of by a company looking to make some quick money. Here are the facts you have to know in order to get the most out of professional debt help.
First and foremost, do not approach anyone until you know exactly how much debt you have. Sit down with a calculator and all your bills and add up everything to see how significant your arrears actually are. Next, work out how much money you have coming in and what your margins are. If you're not sure, you work out your taxes by subtracting your monthly bills from your monthly income. So say you earn £ 1000 a month and have to pay off £ 300 of debt a month as well as £ 250 of bills you will have a margin of £ 450. Working out your margin will be a good indicator as to how serious your debt is. If you're spending more on servicing your debt each month than you're expecting, then your problem is likely to be quite serious.
Next, do your homework on the financial procedures so you know what they all entail. I will not go into detail on them but be sure to look into debt consolidation loans, debt management services and in particular the IVA or Individual Voluntary Arrangement. The IVA is an insolvency procedure used to service massive amounts of debt. Professional debt help companies will try and sell consumers an IVA whenever possible because they will profit significantly from arranging the deal. Do your research and know the advantages and drawbacks of each procedure.
When you approach a debt help company, make sure you they know you've done research into your own finances. Not only will it help them quickly get an idea of your situation, but it will tell them that you know what you're talking about and will not be swayed into an agreement that does not suit your best interests.
The key to getting the best debt help is doing the research and taking control. If you try and sort things out without the right level of knowledge, it can often lead to disaster.