| Spending’s great! But wait, only until it’s within your control, manageable and balanced with an adequate amount of savings. We all know this and we hear it everywhere and all around. Even your credit card provider gives you plenty of information when you sign up for a credit card. This information like, how credit card payments must be made, is given of course, in most cases, in small print, very small print. At times, this information – when you can actually read it – is worded with complex financial terms and can sound quite ambiguous to regular guy like John Smith. It’s no wonder then that a lot of us find ourselves in a debt position that’s not ideal. Thankfully there is a debt consolidation agency called Freedom Plus who can step in and help you sort your financial woes. Over 50,000 clients are being helped to manage more than $1.0 billion in debt. Freedom Plus is certified, audited, bonded and working hard to get its clients debts free fast.
How exactly does Freedom Plus manage to wave this magic wand and bring debt relief? Ah! Have you heard how; if something is too good to believe, then it’s probably not true? Well, Freedom Plus is not here to make your outstanding loans magically disappear. It is here to assist you through your repayment process. They literally hold your hand from the moment you sign up, from reviewing your personal debt – savings – income situation to coming up with a payment plan that is a win-win situation for all parties involved. This is not suggesting for a moment that you will not have to make any sacrifices, but you will have their support all along the way. Changes to your lifestyle or the way you manage your finances may be affected, but Freedom’s involvement will ensure that you can still continue having a normal or close to normal lifestyle.
Once Freedom takes stock of your situation, then they will begin discussions with you so you can proceed to take steps and rectify matters. Obviously one shoe doesn’t fit all. There are several options out there and you may be advised to take up one or a few of the tools available depending on your personal scenario. Relief may be in the form of Mortgage Refinance, Credit Card Payments, Credit Counseling, Debt Negotiation or Bankruptcy. Taking an in-depth view of your personal credit rating, affordability or surplus funds available for debt repayment, a path towards making a step-by-step reduction of your debt can become clearer.
If you have a home loan with a sufficient amount of equity saved up, this is generally the first option to consider. You can approach your financier or others to refinance your home loan so that you can draw out some funds. Using these to repay your credit card is a great alternative as the difference between low mortgage interest rates and huge credit card rates is an instant saving.
Simply making more than the minimum payment on your credit card statement will slowly but steadily improve your situation. Ideally, the closing balance on your credit card being paid by the due date is the best way to remain free from high credit card interest rates. Credit counseling is using external agencies – for a small fee – that will take a monthly payment from you to use towards reducing your various debts. With their financial expertise, they can do this in the optimum way, to make your repayments have the best value. At times, due to the number of clients and the bulk nature of repayments to certain creditors, Credit Counseling agencies can negotiate marginally lower interest rates for you.
Debt Negotiation is taken up by reputed agencies that approach your creditors on your behalf and negotiate on reducing your total debt, sometimes down by 40 to 60 percent. We are finding several creditors open to this solution as a way of redeeming at least some of their owing as a way of not losing out completely and recouping a part of what they are owed. One of the last options and one that should be taken after a lot of thought due to its long-term ramifications, is declaring Bankruptcy. This has an impact on your credit rating and can impact your chances of getting future credit and the interest rate a financier will be comfortable providing. It can even impact your employment prospects. |
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