Debt Management Counselling

Debt Management Counselling

Is Debt Management Counselling Something You Need?

If you are struggling with your debt, it is likely that you are looking into options to help you. Debt management counselling is one option widely available but there are many questions about it. How will it help you? Is this something that you really need? What will it mean for lending in the future? These are all questions that you need to find answers for before accepting any form of debt help.

How Will It Help You?

Debt management counselling offers you the ability to find the best way to pay off your debt. Counsellors will look at your financial situation and the amount of money that you owe. They will find the best option for clearing your debts, whether that is taking a consolidation loan, continuing the way that you are or entering in one of their management plans.

They can also offer you help with negotiating new terms for your debt. You may want to keep paying off the debt yourself but need longer. The counselling services will be able to talk to your lender and negotiate these. They have a better standing as they will be able to explain the problem if the negotiation cannot be made.

Is This Something You Really Need?

Do you really need to opt for debt management counselling? How bad is your debt really and can you manage it? You may find that budgeting your own money and looking at your debts one by one is the better option instead of opting for the negotiation services. However, you may be that far in debt that you are struggling to even make the minimum repayments. You may need the help of professionals before you end up with too many CCJs to handle and bailiffs knocking at your door. If you are on the verge of bankruptcy, this is definitely something for you.

What Will It Mean for Future Lending?

Debt management counselling will have an effect on your credit rating. This type of financial help will appear on your credit file for other lenders to see and you will be considered a higher risk. Like bankruptcy, it will remain on your file for six years. However, this will not look as bad as bankruptcy since you have shown a willingness to clear some of the money that you owe instead of making creditors lose out on everything. The details of the plan will not be shown on the credit history.