How to Become Debt Free

Many people don't know that they have a debt problem. It is only when a crisis happens, for example, loss of hours at work or break up of a relationship, that these debt issues come to light because you can't borrow any more.Wanting to become debt free is an admirable goal, the problem is that there is so much debt advice on the internet, it is difficult to know who to trust and what is the right advice. The average borrower in the UK has £18,000 of debt. They are paying about £2,500 per year in interest alone.  That's £200 per month.  That means if you’re paying £250 per month, only £50 is going off the debt – it's going to take you a very long time to become debt free.Many people turn to Debt Management.  With A debt management plan you will pay back ALL of the money you owe, plus a fee to the company who is ‘helping’ you. This may sound good, but actually you're never realistically going to be debt free. Often people can pay 120% up to 200% of what they owe!

The problem with Debt Management is that the company, is all too often is taking a monthly fee from you. They don't ever want you to become debt free, because if you do become debt free, you will stop paying your monthly fees.  Where is their incentive for you to become debt free? There isn't one!

Debt Management Companies often state they will try to freeze interest and charges and yet they don't.  They sometimes never try.  It's just not in their interest.  This means that every time you make a payment, they take a fee, the rest of your money goes against the debt and the creditors pile on more interest – leaving you on a longer plan that you should be – and guess what?  More monthly fees to the Debt Management companies!  Also, don't think that by joining one of the larger companies you are any better off.  They are all at it. The bigger the company, the more likely they are to be ripping you off.

There is a little known debt solution called Debt Settlement.  It is often the fastest way to become debt free.  Creditors will sometimes contact customers asking if they have a lump sum and would they be interested in making a Full and final settlement or Short Settlement. It's no good for creditors to be owed £10,000 and be getting their money over 5 or 10 yrs.  They would much rather clear the debt, take some money for the debt and then lend the money out again to someone who is able to pay the monthly amount.It's entirely possible to become debt free for between 55% and 65% of the balance you owe.  It very much depends on which creditors you have and your personal situation.

At Settle-My-Debt we can not only settle your various regular monthly payments and replace them with a manageable single payment, but we can also renegotiate the balance that you owe with your creditors - meaning that in many cases, we can reduce the total amount you owe by over half.

Now that you are aware of the problems with debt management plans and IVA’s, it’s now possible to avoid the traps and pitfalls that they use to entice you in with. Please fill in this simple form and we will suggest what the best options are for you. You will need all the creditor information to hand including account numbers and names. Alternatively, you can call 0800 60 123 188