Loans FAQ
Record Debt Levels
Many people in the UK are experiencing record levels of debt, following the consumer credit boom of the last decade. For some people, their debt can become a problem, with repayments becoming unaffordable raising stress levels and risking severe consequences such as repossession or court action.
A common solution to this problem is to take out a debt consolidation loan, but if debt problems really are getting out of hand then this may only be delaying the inevitable, as it's adding yet more credit committments and debt to your financial situation.
Debt Management
There is another way out though, which can help to reduce your repayments : a debt management program.
Under debt management, a debt advisor will negotiate with your creditors to reduce repayments, by asking for interest to be frozen for example, and will take over all the problems and paymetns surrounding your debt. You simply make a single more affordable monthly repayment to the debt manager, who will distribute funds to your creditors under the terms that have been agreed.
The effectiveness of debt management will vary depending on how flexible your individual creditors are, but many people find that their repayments can be cut by as much as 50% or more.
