Just like food and water, money is one of the major lifelines of a human being. Over the years money has become the one and only purpose of life for every human being on this planet.
Money has no equity. Everyone wants to lead a happy life. And you have to agree with me on the fact that right now we are living in a world where money is the only entity which can buy happiness and can give all the life satisfaction you need.
Now the problem is that everyone does not income an equal amount of money but everyone wants to lead their dream life. Due to these people who have less money tend to lend and borrow money from different money lenders and banks.
But the problem of lending money is that you have to clear the debts in time. Well, you can say this as a responsibility than a problem. Sometimes debts can be a nightmare and can affect a person both mentally and financially.
That is why in these types of cases it is recommended that people should choose for a proper debt management plan from a recognized organization like Step Change UK.
Debts- Things to Consider
Simply as a definition, you can say that debt is the amount of money that one person borrows from another person or party or organization to make a large purchase. Sometimes people tend to buy something that is out of their capacity of purchase.
In these cases, they borrow money from different third parties as a debt to make that purchase. But if you are borrowing some amount of money from a party as a debt then in return you have to repay that debt including some interest amount.
As a result, in the case of return the amount increases than that of the original debt amount. But the amount of money will only become debt if you are unable to pay the amount within the given time period and becomes a financial burden.
In these cases, the following things can happen with you if your debt is due for a longer period of time.
Reminders and Alerts-
If your debt amount is due for a longer period of time then the first thing the creditors will do is that they will send you reminders and alerts to clear the debt amount as soon as possible. The frequency of getting reminders and alerts regarding your debt will increase with the increase of time period.
Legal Notice and Legal Actions-
Generally, it is recommended to pay the debt amount within the time period. Now, this is recommended because if the time period of the debt exceeds much longer then the creditors can send you legal notices and might take some legal action against you. That is why in these cases Stepchange can help you in debt management.
Getting sunk in too much debt can affect your financial reputation and in the future, you might get blocked by several creditors and money-lenders.
Debt Collection Agency-
In some cases when the debt becomes too high, the creditors transfer the debt to some debt collection agency. Therefore, in this case, you might get contacted by some third parties other than your creditors.
Need to Know All About Step Change-
Dealing with debts?
Well, worry no more and make a stepchange login to get the best solution for your debts.
For over 25 years, Step Change is providing immense support and debt help to people with financial difficulties. We plan the best debt management techniques to cope up with the huge burden of debts.
Here at Step Change, our vision is to create a debt-free society. Over the years the problem of debt is increasing. That is why our one and only aim is to prevent all the debt problems of every individual and help them to overcome the difficulties created by huge debt amounts.
Some of our major objectives include:
- Provide all necessary awareness of free debt advice and solutions.
- Help every single person who is at risk of debt or facing any debt-related problems.
- Get people more aware of their financial understandings and how to manage their debt-money properly.
- Educate people more about different debt and financial problems give them advice on how to manage their money better.
Why choose Step Change and how you can get help from us?
One of the best things about Step Change is that here we understand your financial condition. So whenever you are doing business with us feel free to share any kind of problems and issues regarding your debt.
Over 25 years we have a benchmark of helping around 650,000 people each year with their debt issues. From us, you can get different free advice for your particular situations. Other than just giving advice we also provide professional solutions and support.
Here at Step Change, we have a group of experts who helps you to deal with your debts and gives you all the support you need. Two of our best services include the Debt Management Plan(DMP) and an Individual Voluntary Arrangement(IVA).
Now let us discuss some more facts about the Debt Management Plan(DMP) and Individual Voluntary Arrangement(IVA).
Debt Management Plan (DMP)- Know the concept
Everyone needs a Debt Management Plan to pay off their debts properly without facing any kind of problem. Basically a Debt management Plan helps you to manage your debts properly and repay them at more affordable rates by reducing monthly payment rates.
DMPs from StepChange Debt Charity are completely fee-free. That means from are getting a perfect Debt Management Plan (DMP) from a group of world-class professionals without any kind of charges.
Though DMPs are necessary for each and every debt holders it has beneficiary and risk points that you need to know.
Benefits of a Debt Management Plan(DMP)
Unlike most Debt Charity companies, Debt Management Plans provided by Step Change are completely free of cost.
We will create a budget for you so that you only pay what you can afford to the creditors.
DMPs will help you to get your account back up to date. But you have to make ongoing monthly payments.
You only have to make a monthly payment to us and we will manage your debt payments to your creditors for you. We review the DMPs of each and every client of ours so that you only pay what you can afford.
So what is an IVA (Individual Voluntary Arrangement)?
An Individual Voluntary Arrangement or IVA is a formatted agreement that allows you to make payments that you can afford to repay your debt amount.
With an IVA you get two options to repay the debt amount, one by installment payment and another by paying the total amount at a single time which is also called lump-sum IVA.
In an installment based IVA, you have to pay affordable monthly payments for a general period of five or six years.
Some of the benefits of an IVA includes
- You don’t have to pay any kind of charge before your IVA is approved.
- If you are using an IVA then you have to pay a monthly fee(only when your IVA is in progress). These fees are set by your creditors and are included in your monthly repayment amounts.
- If you are paying a lump-sum amount that means that you are making a full and final payment then the payment can be done at once or else you have to choose for the monthly installment option.
Just like DMPs, an IVA is also fully customizable. At Step Change we use some advanced tools to customize the IVA according to the situation of each and every client.
Thinking how to repay your debts? Contact us now to get free Debt Help and Advice.
We at Stepchange believe in delivering the best professional advice and support to any kind of debt-related problems and issues. Visit our website to get free stepchange live chat advice on any kind of debt help.
You can directly call us at stepchange contact number 0800 046 5868 to get in touch with our professionals. Always feel free to talk to us about your debt problem. Try to give us as much information you can give so that we can help you to recover from your pain points.