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Paying Debts: How to Reduce My Outstanding Debt?

Most often, people ho ask our advice wants to know the secret on how they can pay off their debts. The answer to this question actually depends on your financial circumstances.

If you cannot cope up with your monthly payments, we can give you free debt advice to deal with your debt more effectively. We can help you create a plan on how you can reduce your monthly payments each month. Besides, we can help you understand the impact of debts on your credit record.

Reducing My Outstanding Debt

Before you consider options in reducing your debt, you must first determine your income and expenses each month. Understanding how much money you earn and spend each month will help you create a budget. Once you create a budget, you’ll be able to figure out how much money you can afford to save or pay on your debts.

If you can’t afford to pay extra towards your debt, you need to contact us for a debt management plan that suits your situation.

Financial Help To Cushion the Impact Of COVID-19 Pandemic

Several measures are considered to assist individuals who are coping with the effects of COVID-19 or Coronavirus Pandemic to their finances. These include payment breaks on mortgage and payment holidays for some unsecured debts and moratorium extension for residents in Scotland.

You may also read our guide: Financial Help Available During Coronavirus Pandemic and Payments for Car Loans and Finance During Coronavirus Outbreak.

Can I negotiate with my creditors?

Oftentimes, your creditors might settle for an agreement in lowering your monthly installments when you’ve proven to pay more than you can afford each month. This can be done through a debt management plan.

Besides, most creditors are likely to agree in giving you a payment holiday, while you try sorting out with your finance. This arrangement may not be permanent as creditors can temporarily freeze your interest charges for some time. You must try negotiating with your creditor and see if they will allow such an arrangement.

You might also negotiate for debt settlements with your creditors that may include partial settlements. When this happens, your creditor is likely to agree when you give a portion of what you owe when you can guarantee paying for the full amount.

What happens If I can’t pay my debts?

It is a must t reach out to the people you owe and keep them updated with your status towards debt payments.

You can do this by sending a letter to your creditor explaining your struggle with your finances and living costs. It is highly recommended to provide a statement of your income and spending. This will convey an idea to your creditor that you don’t have much left on your income each month. When this happens, your creditor may propose or agree for new payment terms or even temporarily suspend debt collection.

If you failed to keep up with your regular payments, you have to set priorities to your debts. Additionally, you must be on top of your debt payments to avoid drastic consequences. You may also refer to our guide regarding debts to pay first for more useful tips.

If you failed to keep up with your regular payments, you have to set priorities to your debts. Additionally, you must be on top of your debt payments to avoid drastic consequences. You may also refer to our guide regarding what debts to pay first for more useful tips.

Available Help in Making Debt Payments

If you can barely cope up in paying your debts, contact us for debt advice immediately. There are several ways of dealing with your debt problems. Other than reducing payments, you have a wide range of options that you can choose from. Do not hesitate to contact us and we will help you get back on track towards financial freedom.