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Debt Planning

Debt planning allows the debtor to work out how they can make reasonable payments to your creditors (those people or businesses to which you owe money) over a set period of time. We often feel guilt and shame for mismanaging our finances and it's easily done, but what we need to do is take action, rather than getting depressed about it. One of the first things that we need to do is make a budget. This can be a chore, but it's the best way to have a good (if sometimes shocking) view our personal finances, include all of your income, earnings, benefit and the like in one column, add it all up and that's the amount you have each month to spend.

Then begin to compile your list of outgoings, mortgage or rent, bills (electricity, gas, telephone, mobile phone) divided by three if they are quarterly bills, then food for the month (don't forget some months are five weeks long, not four). Add up all of your debts, loans, credit cards, store cards, catalogue, hire purchase, and perhaps any other direct debit subscriptions that you have. Your income SHOULD be higher than your expenditure. If it isn't, you have two choices, you either need to earn more money or you need to plan to repay your debts differently.

A debt advisor will help you with all of the above, and then the next step is to plan how to pay back or discharge your debts. An advisor can help you make an agreement to reduce your payments for a period of time with your creditors. This often involves sending your creditors your detailed budget and then negotiating an interest freeze and smaller repayment amounts. Good debt planning requires experienced, qualified professionals who job is to tell you in these situations.

If you would like assistance with debt planning, why not contact us on FREEPHONE 0808 22 22 123.