When you are in debt,
it is clear that you owe money to various people, and that you are asked to make regular repayments on the money that you have borrowed. What is less clear is that these amounts, both the money borrowed and accumulating interest, are often more negotiable than you might at first think. We, at cleardebts.co.uk have many years of experience in negotiating down the amounts of repayments and this should be your first step if you are in debt – to contact us to see what can be done in your individual case.
Repayments can be reduced in many ways. Here are some:
- Get an IVA – if you have debt of over £15,000 and regular income, you may qualify for an IVA. If so, your debt could be reduced by up to 70%. Repayments are calculated only on what you can afford to pay.
Enter a Debt Management Plan – cleardebts.co.uk can work with you to have a debt management plan. It works really well in that the people who you owe money to agree to freeze interest payments in turn for a fixed monthly payment. We help you work out what you can afford to pay.
Transfer your debt – maybe you have store card or credit card debt. It might be possible to go to your bank and negotiate a temporary (say a year) higher overdraft facility. Then you can pay off your store or credit cards and go overdrawn. Whilst you will still be in debt (now to the bank) the repayments should be significantly lower as the authorised overdraft interest rate should be significantly lower that what the store or credit cards charge.
Extend the debt – if you are having difficulty repaying a loan, give the lender a ring and see if you can pay it off over a longer period instead. Be careful though as this will increase the amount of money you have to pay in the long run. But, for now, it will reduce your repayments.