As Xmas is just around the corner this means eating, drinking, and fun all-round. However that is to say it should mean this, unless you are up to your neck in debt with unsecured loans or credit cards. If you are already in debt and fear that Christmas spending on your card or by taking out another loan, means you are worried about adding more debt onto your existing debts then you need to seek debt advice and help...
There are numerous ways to face debt and look to becoming free of debt should you have overspent through credit card,unsecured loans, or store cards. The most popular options to become free of debt are:
- consolidation loans;
- a debt management plan;
- an IVA.
If you take out a debt management plan or IVA arrangement, your debt management specialist works alongside you helping you to reach an agreement with your creditors on your behalf. If they agree, your plan continues over a period and you pay one, perhaps lower monthly sum of money, to your debt management team. This amount is then shared equally by your team between those you are indebted.
Should you decide to take a consolidation loan you combine all and any debts that are unsecured, such as credit cards of unsecured loans and then take out a loan to cover this amount. If you spread out the loan over a longer period, you pay affordable repayments per month, however the consolidation loan will work out more over time with interest added onto it. If you keep up with the repayments you will pay off the money you owe in a fixed period.
However, it is essential not to take on any more credit again during this time and to work out a budget for the future.
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