Debt is not a new problem but with the worsening economic situation it is much bigger than it used to be. More people are finding themselves in debt with no real prospect of paying back everything they owe.
If you feel you’re getting nowhere with reducing your debts and that debt is your singlemost significant worry, then a Debt Management Plan may be the right solution for you.
A Debt Management Plan is an efficient effective way to pay off debts in an affordable manner. It is not a formal arrangement and hence is flexible so that should your situation improve you’re able to pay in more.
The most difficult problem to overcome is admitting that there is a problem in the first place. Although you may be servicing your debts by paying the minimum payment, accrued interest and ongoing charges mean that you make little headway into reducing your debt.
The Gopher Money professionally trained staff will evaluate your financial situation and assist you in creating a budget to help you manage your debts. You will only need to pay what you can afford having serviced your principal secured debts such as your mortgage or your rent.
A Debt Management Plan can only be applied to unsecured debt, which is any debt not tied to an asset e.g. credit cards, store cards and personal loans.
A Debt Management Plan allows people to:
- Get their financial situation under control
- Structure a manageable repayment plan
- Tailor repayments to affordability
- In most cases it will freeze interest and ongoing charges
- Safeguard the matrimonial home
- Avoid insolvency
- Be flexible with level of monthly payments
- Reduce existing payments
- Pay one single payment which is distributed to creditors
The Gopher Money team will set up the Debt Management Plan and negotiate with your creditors. This will give you peace of mind and allow you to start to reduce your debt. There are a number of less obvious benefits, such as learning to set and keep to a budget, living without being dependent upon credit and not having to worry about your creditors.