Should I manage my own debts, or contact a debt adviser?

Should I manage my own debts, or contact a debt adviser?

In these uncertain times for the economy, managing debts is at the front of many peoples’ minds. But ‘debt management’ is a broad term. On the one hand, it can be a personal thing: what are you doing to manage your debts?

Debt management can also involve seeking help from elsewhere – namely a professional debt adviser – in order to start getting rid of troublesome debts. But why should you seek help with your debts from elsewhere, if it’s possible to manage them yourself?

It’s a valid question to ask – and there may be charges associated with getting professional debt help – but managing your debts through a professional debt adviser, rather than going it alone, can offer several benefits.

You’re supported all the way

It’s a case of strength in numbers: working with a debt adviser will mean less stress and effort involved in managing your debts. Your debt adviser will act as a single point of contact – they will contact your various creditors for you, saving you time and effort.

Negotiating a debt management plan involves constant letters and phonecalls to and from your creditors – and trying to reach an agreeable conclusion whilst balancing it with your 9-5 commitments can be difficult. That can be very stressful, but your debt adviser does it all the time – after all, they have the experience, and the time to do it in.

Make your monthly payments smaller

Debt management usually involves reducing your payments and making them more manageable. Your debt adviser can negotiate with creditors to allow your debts to be repaid over a longer period of time, meaning payments are smaller each month.

They may also be able to negotiate a freeze on interest and other charges, meaning your debts will stop getting any bigger. Unless interest is reduced or frozen, paying your debt over a longer period may mean you pay back more overall.

It is possible to do all this yourself – but the effort involved can make it a time-consuming and potentially stressful process. Letting a debt adviser take over can help you avoid that.

Professional relationship between debt adviser and creditors

If you speak to a professional debt adviser, the chances are they have dealt with some or all of your creditors on several occasions, and they will be familiar with all the processes and people involved. This could be especially helpful if your own relationship with your creditors has broken down, or if there is a dispute that needs resolving.

Minimising damage to your credit rating

By making new arrangements with your creditors, your debt adviser can help avoid your debts escalating and becoming even more serious, including court action or CCJs (County Court Judgements). Your credit rating may still suffer if you enter into a debt management plan, but there is less risk of serious legal action and therefore less risk to your credit history.

It is possible to do all of this yourself, if you are confident and well-organised. Letting a professional debt adviser do the work for you will take the weight off your shoulders, and make the process much less stressful and time-consuming.