At Moolr, we understand that dealing with debt can be an extremely stressful process. There’s often no apparent light at the end of the tunnel. What’s more, debt can itself prove expensive due to the extra charges it incurs. It leaves you trapped in a vicious circle. However, it doesn’t have to be this way. Debt management is key to dealing with the stress of owing money.
So what are the key aims you should be looking to achieve?
1. Arrange lower monthly repayments. Whilst this may result in a longer repayment period and an increased total cost, it would mean you could afford the monthly payments & greatly reduce the stress caused by unmanageable debt.
2. Bring an end to being chased by creditors. The peace of mind in getting creditors off your back cannot be underestimated. With a debt management plan, they can no longer chase you for debts covered by the plan.
3. To provide all the help and support you need. Should you seek assistance from Moolr, be it a 6 month loan or 24 month loans, we’ll be with you every step of the way. We offer friendly, expert advice whenever you need it. Advice includes articles such as how to save and make money and a look at credit scores. And much more.
4. Sort freezing your interest charges. Your lenders have no obligation to agree to this, but it’s something worth looking into.
5. Consolidate your debts. The convenience of one monthly payment for your unsecured debts. Secured debts such as a mortgage cannot be included on such plans, so you will have to continue these payments separately. Unsecured loans are one excellent way of consolidating debts.
Debt management is basically the process of arranging a new repayment plan that allows someone struggling with debts to make manageable monthly payments. A loan could plausibly leave you with smaller, manageable repayments, but often over a longer period of time.
Secured loans such as a mortgage are not included in debt management plans. These need to be repaid separately.
As repayments are stretched over a longer period of time, you need to be aware that the total repayment may be more than it was before by the time you have finished. You help achieve financial stability though with smaller monthly repayments. you remove the pressure before the next payday.
A debt management plan will be recorded on your credit report for 6 years, so it is possible that during that period you may find it harder to obtain further credit. However, if you struggle to pay back what you owe, then a debt management plan has many advantages. One great advantage is that making regular repayments makes you trustworthy. Thus, future lenders will be more confident in letting you borrow. Your credit rating should improve with regular repayments, hence this increased confidence from lenders.
Check the rest of our site for more advice and to see what we can offer. Take control of your finances for a stress-free future. Remember, there is no obligation to proceed should you receive a loan quote.