Money is an important asset that helps a person to live a comfortable life. However, having less of it compels an individual to borrow from creditors and money-lenders. As a result, the non-payment of these loans could create a heavy debt. In such cases, they need an expert debt management advisory like Step Change.
We all know how much debt can affect a person both financially and mentally. Therefore, it is important for people to know that there are various options to get out of debt. Thus, seeking advice from organizations like Step Change is always recommended for such people.
What is Step Change and what do they do?
Step Change is the most popular debt counseling organization based in the UK. They help all kinds of people to overcome the various burdens of debts. Above all, they help people to gain back control over their financial situation for a long period of time.
Accordingly, they have helped more than 500,000 people till date. They provide excellent debt management plans, debt consolidation and debt help to their clients. Furthermore, they provide debt counseling completely free of charge.
As a result, you can easily avail of financial and debt solutions without having to pay for anything. All their staff is expert financial advisors who have complete knowledge of debt solutions.
Together with their clients, they aim to build up a society who is completely free from debt. Therefore, provide customized debt management plans to help achieve those goals.
What are Debts?
A debt is any amount of money that is owed to a creditor or third-party money-lender. It can either be of a small amount or a hefty amount. Generally, these are loaded with interest and other charges. As a result, the debtor usually owes more money than he had taken from the creditor.
Furthermore, a debt is considered as a debt when the defaulter is unable to pay it back to the creditor. In this case, the following events will occur with the debtor.
- Reminders and Alerts – Incidentally, the creditors will remind you about your payments through phone calls, SMS alerts or emails. The frequency of these will increase as you keep on defaulting your payments.
- Default Notice or Legal Action – Finally, they will give you a default notice for the missing payments. In addition, they may take legal action against you as well. They might even advise you to get debt help from organizations like Step Change.
- Personal Credit File – Furthermore, all these will greatly affect your personal credit file. As a result, creditors or money-lenders will not be ready to lend you money in the future.
- Debt Collection Agency – Sometimes, creditors might transfer your debts to a debt collection agency. In this case, you will be contacted by a different person other than your creditors. However, the pressure for paying such debts will always linger on.
How to Manage Debts?
Dealing with debts may sound scary but it is more often than not. The pressure from creditors may affect your mental health but there are always options to deal with it. In addition, the best way to deal with debt problems is by seeking advice from Step Change.
Some other ways through which you can manage your debts are –
- Prioritize your debts – Make sure that you’re giving importance to those debts that are larger in amount. For instance, you should always prioritize a house loan over utility loans.
- Respond to Court Claims – In case creditors have taken legal action, you need to respond to them. You should attend the court dates and state your reasons for defaults in payment.
- Seek Advice – Contacting organizations like Step Change should be the first thing that you need to do. They will be able to provide expert advice on your problems. Furthermore, they will provide you with multiple options.
- Get Support from Close Ones – In times like these, it is always beneficial to seek support from your friends or family. They can help you to cover payments and get some burden off your back.
How can Step Change help you with your Debt?
One of the best benefits of Step Change is that they will never judge you for your financial situation. Their staffs are well-mannered and expert advisors of debt management.
In addition, they will provide the best debt help and debt relief plans that are best suited for an individual’s needs. They will understand your concerns and carefully analyze your financial situation.
Besides, they will recommend only those plans that will be affordable for you. You can receive free debt advice and solutions for your monetary problems.
Furthermore, they will happily guide you in every step of the debt management plan. Some of the services provided by them are listed as follows.
- Personalized Debt Management Plan
- Individual Voluntary Arrangement
- Bankruptcy Advice
- Equity Release
- Debt Arrangement Scheme
- Debt Relief Order
- Minimal Asset Process
- Mortgage Advice
- Protected Trust Deed
Subsequently, it is to be noted that it is completely free to avail debt help advice. They will charge no amount of money to guide you and provide you with a debt solution. Therefore, you can learn how to manage your debts without signing up for any kind of plans.
What services can Step Change Provide you?
Step Change offers a range of services for its various types of clients. Debt counseling and offering debt management plans is the most important services provided by them. They can easily offer expert advice on dealing with your debt.
Their team of professional advisors will carefully analyze your situation and offer the best solutions to manage your debts. Furthermore, they can give you advice related to money and budgeting.
In addition, they can help you to cope with stress arising from debts itself. Their most popular services are the Debt Management Plan (DMP) and an Individual Voluntary Arrangement (IVA).
What is a DMP (Debt Management Plan)?
A DMP is a customized plan to manage and repay your debts in an affordable way. It is very easy to set up and completely free to manage. Therefore, you will be able to pay off your debts at reduced monthly payments.
As a result, you will be liable to pay only what you can afford according to your current financial solution. Step Change will contact the Creditors themselves and process the payments through your DMP.
The professional advisors will evaluate your needs with the help of a Debt Advice Tool. Thus, they will be able to recommend the best plan completely tailored to you.
What is an IVA (Individual Voluntary Arrangement)?
An IVA is a formal agreement where you come under a contract for a fixed period of time. During this period, you have to pay your debts at a reduced rate. Furthermore, any unsecured debts will be written off at the end of this period.
Usually, an IVA can either be of 5 or 6 years long. However, there are certain terms and conditions related to this agreement. Therefore, you may need to contact Step Change to know the complete details before going for an IVA.
In addition, an IVA is recorded in the public register. It will be shown in your Credit File as well. Subsequently, it is not particularly easy to get an IVA as creditors may easily reject it. Also, only unsecured debts are written off. Therefore, any secured debts will still have to be paid by you.
Similarly to a DMP, an IVA can be customized as well. They will use advanced tools to analyze your financial position and needs and offer the best plans suited for you.
Having a heavy burden of Debt? Are you constantly stressing out? Contact us Now to Receive free Debt Help!
We offer expert debt management advice for all kinds of debts. You can readily get free debt advice through our live chat on our website. Furthermore, you can also call us at StepChange contact number 0800 046 5868.
We have a range of advanced tools that can easily analyze your financial situation and needs. Thus, our team of expert advisors can provide quality debt help that will be best suited for you.