The world is in $322 trillion of debt, and many are struggling to make ends meet each month. It’s a horrifying thought to owe someone or a company a lot of money but unfortunately, it’s now easier than ever to land yourself in debt. With buy now and pay later schemes and easily accepted finance options, it’s all too easy to say yes to purchasing something, and then later finding out that you don’t have the money. So how can you beat debt? Debt arrangement schemes are becoming increasingly popular all over the world, but many people are skeptical because of the ‘rogue’ companies that promise to give you the help you need but in fact, are simply after your money. So, are debt arrangement schemes worth it? Let’s take a look at what they can offer you and why we think they are the best solution for getting yourself out of debt.
First of all, knowing what not to look for in a debt relief company is essential for finding the right one for you. Rogue companies will often offer you a loan with very high interest rates. While taking out a loan to clear all your debt and then simply pay back that loan might seem like a good way out, it’s a very expensive way of doing so. Remember that debt consolidation companies won’t offer you loans or even try and make you take out money with them. Even though this method would clear your existing debts faster, it will create another one at the same time. Keep this in mind when searching for debt arrangement schemes and you’ll keep yourself safe from loan sharks.
The first thing that you need to know is what exactly debt arrangement schemes can offer you when you’re in over your head with debt:
- Your monthly payments could be reduced to as little as £80 a month with National Debt Advice. This is because they spread your repayments over five years and make it so that your debts are easily manageable. They understand that you still need to survive and pay the rest of your bills as well as eat, so while five years might sound like a long time, it is the best option in the long run to prevent any more debt arising.
- They will take on management of dealing with the companies that you owe. This means that you will no longer receive demand letters or harassing phone calls. Imagine not having the stress and worry of simply answering the phone anymore?
- As mentioned earlier, the solution to your debt problems won’t come with taking out more loans. In the long run, this will improve your credit rating if you’re showing that you’re chipping away at your debt without having to turn to yet another loan. Once your debt is cleared, you’ll be surprised at how good your credit score is. If you’re interested in keeping an eye on your credit score, there’s a completely free app and service called clear score. It calculates what you’re doing wrong and how you can improve your credit rating.
- Unlike a lot of debt plans, you won’t have to pay any upfront fees to begin the process of getting out of debt. Again ‘rogue’ companies may expect you to pay something upfront for their services.
- If after five years you’re still paying off your debts, more often than not your debt can be legally written off. Another reason why you’re offered a plan that’s so lengthy.
- Using debt arrangement schemes will often freeze the interest you’re paying on your debt too, so the figure you see is the figure you pay, with no hidden charges.
- You will no longer have to worry about your card being declined for essentials such as food and water, and you won’t have the embarrassment of having to ask friends and family for help with your money; gaining independence back with your financial status!
- Over all your experience with getting yourself out of debt will be made as easy as possible. No stress of creditors harassing you, and no worries of forgetting to pay one of your debts off because it’s all in one monthly payment rather than multiple payments.
As you can see, debt arrangement schemes are definitely worth looking into. While it might not be the solution for everyone in debt, they can certainly help you take a step in the right direction to becoming debt free. People often shy away from things that they aren’t sure on, and with big words like debt arrangement schemes, you can almost imagine all of the fine print and complicated jargon that will be thrown at you. The truth is, genuine companies like National Debt Advice are there to help you get out of debt, and avoid the unnecessary jargon or confusion. Consider a debt arrangement scheme to help get yourself out of debt!