Debt management strategies

Getting into debt is never a pleasant thing. Luckily, on our debt management course, you’ll learn all of the important debt management strategies.

Our debt management skills course will give you all of the necessary knowledge that’ll help you to take that first step to tackling debts, then eventually reducing and removing it. It’ll also help to relieve yourself of the financial pressure that you’re under.

Different types of debt often include unpaid rent, bills, tax, overdrafts, utility bills, fines, and hire purchase agreements.

Debt Management – Identifying debts

If you find yourself neck-deep in debt, the best way to go about it is to look at your outgoings. You can either deal with the debt yourself or get support and advice from an agency.

Sort out any debts that you have that may be top priority. Then act immediately as you may face serious consequences. Contact creditors to explain your financial situation and negotiate a payment arrangement.

Establishing a Debt Management Plan

A debt management plan (DMP) consists of an agreement between the person who’s in debt and the creditor.

A debt management plan is usually in place when the existing agreed payments can’t be made because of financial difficulties.

During the early 90s, the debt management plan was introduced in the UK by the Consumer Credit Counselling Service (CCCS).

A DMP provides an agreement to pay off all outstanding debts and can run over a longer period of time than initially planned.

Having a debt management plan will help you manage your debts and make reduced monthly repayments. This is so that you can pay off your debts at a more affordable rate. It will make all your payments a lot more manageable.

A few tips to improve your credit rating…

• Register to Vote – the best way to improve your credit score is to get on the electoral register, as it affects your credit rating. The reason being is that lenders use this information in order to verify that you are who you say you are.
• Avoid Payday Loans – payday loans can be highly damaging to mortgage applications. This is because they’re often very expensive. Also, the people who decide if you’ll get a mortgage, known as underwriters, will often reject anyone with a payday loan as it’s an example of poor money management.
• Cancel Unused Credit Cards – cancelling credit cards will reduce the chances of becoming victim to any fraudulent activity and lowers your available credit.
• Make Sure your Payments are on Time – whenever you do take out any credit, always make sure your payments are made on time or, even better, pay them off earlier. This will improve your credit record.

Helping Others With Debt Issues

If you know someone who’s in debt or having lots of financial issues, just let them know that they’re not alone. Being there for them, listening to them and helping them save money by giving them advice can usually make a lot of difference.

If you want learn more about getting out of debt, then you may also be interested in our debt buster course. This’ll help you to overcome whatever financial crises that you may face, establish an effective debt management plan and reduce the risk of any future problems.

Have you ever been in any debt? What are your top tips for getting out of debt? What are your top debt management strategies? See details of our debt management distance learning course here…