News By Tag
News By Place
Follow on Google News
Debt consolidation tips and negotiation steps
Debt consolidation is a task many people do face these days. However not many of them know where to start. I am trying to help you with this short guide to make sure all the details are covered and everything goes smoothly. Good luck!
By: solvemybadcredit Laura Wolf
1.Discuss your financial situation
You need to come clear about your bad credit and after you have successfully evaluated your credit situation you should make sure that you discuss it with your creditors, if you are required to, with your employer. You need to seek advice from either free charities like CAB or Credit Bureau or debt counseling services that offer free review. That is the only way you will see your options clearly.
After a no obligation credit evaluation and income expenditure review you will need to seek advice on debt consolidation from either free service providers, debt counseling agencies or debt management companies. They will be able to determine if IVA, debt settlement, bankruptcy or simple consolidation would resolve your credit issues. It will depend on the amount of debt, your personal circumstances and also if the credit you have is secured or unsecured.
You cannot just trust the first debt management company, you need to look into their past, reviews, and expertise. You can shop around and make sure you choose the best option to tackle your credit problems. There are different solutions and you must evaluate which one is going to cost you less in the long term, damage your credit rating the least, and get rid of your bad credit faster.
4.Choose the right consolidation product
After you have looked into different options, you need to make sure you make an informed decision. The easiest way to do this is to list all your options on a piece of paper and list the PRO-s and CON-s of each one. Then you will be able to see more clearly about the credit repair and consolidation options and select the right one. Remember: the decision you will make will determine your financial future for a long time.
5.Stop spending on your credit cards
You have to make sure that you are not piling up more debt than you had before. Therefore it is advisable to close your credit cards or cut them up maybe reduce the credit limit or just simply switch to a pre-paid credit card.
6.Apply for a consolidation product
It is time to make an application for the consolidation product, and to make sure everything goes smoothly you might want to use the assistance of a debt management company. They do have experience in negotiation and also will be able to take reduce the stress that consolidation causes you.
7.Repair your credit rating
To repair your credit rating you just have to concentrate on two very important things. No credit consolidation is going to work if you don't take these things on board. One: No more debt than before. You have to stop taking on new finance until your credit score has improved. Two. You need to make sure that you do pay on time for your newly arranged agreements, to build up your credit score. There is no place for more default notes and late payments.
8.Set up direct debits for the new payments
One of the best ways to make sure you meet your new credit commitments is to set up direct debits or standing orders making sure the money is in the account when being taken and will clear by the payment date.
Great. Now you are on the way to consolidate all your debts. To read more on credit repair, I do advise you to check out my brand new book that I just released!
# # #
I have seen many people struggle with bad credit in the UK recently. We have to find a solution for eliminating debt and starting a new, debt-free life.