With Christmas on its way it is a time for families, joy, eating, drinking and being merry. That is unless you are up to your neck in debt with unsecured loans or credit cards. If you have fallen into the debt trap and fear that Christmas spending on your card is going to be the last straw then you need to seek debt help...
There are numerous solutions to becoming free of debt if you have accumulated debts built up through credit card,store card, unsecured loans or store cards. The most popular ways of becoming free of debt are:
- a consolidation plan;
- a debt management plan;
- an IVA.
With the debt management plan and IVA a debt management team can work with you and on your behalf try and work out the plan with your creditors for you. If they agree to the plan you enter into an agreement over a period of time and pay one monthly sum of money to your debt management team. They in turn distribute this among your creditors.
If taking a consolidation loan you combine all your existing debts and then take out a loan to cover this amount. If you spread out the loan over a longer period, the monthly repayments may be lower, however in the end you pay more for the loan, with interest added on. If you keep up with the repayments you will pay off your debt and will have become debt free. However it is essential not to borrow any more on credit cards or loans.
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