Consolidating your debts into one lower monthly repayment can be the difference for many people between plunging further into debt and working their way into the black. There are a number of parameters that need to be adhered to before choosing a method of debt consolidation:
– Number of Creditors
– Level of Disposable Income
– Level of Debt
Furthermore, there are only certain types of debt that can be consolidated. Here we cover the nine main debt types that could benefit from being consolidated by a debt advisor.
Bailiff Debts
Debts owed to bailiffs can be especially stressful for debtors due to the forceful tactics that are commonly undertaken by bailiff companies to assume control of the outstanding funds. The laws relating to bailiffs are complicated and the circumstances differ from situation to situation. Many people do not fully understand their rights when dealing with bailiffs.
Consolidating a bailiff debt would ensure that the bailiff is legally obliged to cease contacting the debtor, allowing the repayments to be made at an agreed rate.
Credit Card Debt
One of the most common forms of debt; credit cards have forced many people into debt since they were introduced to the UK in 1966. Overspending and insufficient budgeting lead many people to debt problems. Many people are also stung by the interest rates and fees that are attached to credit cards.
At InControl we have a high success rate when dealing with credit card companies and often persuade them to freeze interest and charges on the repayments when a debt is consolidated.
Debt Collection Agency
In a similar manner to Bailiffs, debt collection agencies can be incredibly distressing to deal with due to their aggressive tactics. For individuals, dealing with debt collection agencies can be daunting. At InControl, we have years’ worth of experience in dealing with debt collection agencies, leading to a higher level of success.
Debt collection agencies often actively prefer the input of the professionals at InControl as it adds a guarantee of repayment to the process.
Doorstep Lender
Doorstep lenders or relationship lenders often provide small loans between £100 and £1,000. These loans often have very high rates of interest attached and can see the debtor quickly fall into increasing levels of debt.
At InControl, we have significant experience dealing with doorstop lenders and can help you repay your debts before the interest levels grow too high.
Household Bills
The ever-increasing costs of utilities are making it more difficult for homeowners and tenants to cover the costs of keeping their property heated, lit and watered. Falling behind on bills can lead to the suppliers cutting off the access the households have to these utilities.
If you are being threatened with utilities being cut off, InControl can help you consolidate the debt and ensure that you retain access to the necessities of gas electricity and water.
Local Authorities
Council tax arrears, housing benefit overpayments and tax credit overpayments can soon see households owe significant amounts of money to their local authority, who in turn are often relentless in their pursuit of repayment.
Many councils and authorities welcome the intervention of InControl as it demonstrates willingness on the part of the debtor to address their debts.
Payday Lender
Payday lenders have grown significantly in prominence in recent years and present themselves as an elegant solution to money woes. However, in many cases they have simply served to accentuate the problem of debt rather than solve them. The rates of interest on payday loans are often incredibly high, plunging debtors further into debt.
We have discovered that many users of payday lenders, use a number of different similar services simultaneously to try and manage their debts. Consolidating these debts with us helps them pay off everything they owe at a rate that suits them.
Store & Catalogue Cards
Store and catalogue cards can be incredibly attractive due to the introductory offers and rates that are offered, but can sting owners with their high interest rates. Many people accrue late payment fees due to budget mismanagement.
We can help those who have taken out numerous store cards and are struggling to repay the level of debt they have acquired.
Unsecured Loans and Overdrafts
Many people suffer the unfortunate experience of losing their source of income whilst repaying a loan or overdraft. This can plunge the individual into a level of debt that they cannot afford to repay. Interest and late payment fees may be added to the debt, only increasing the difficulty of repayment.
Understanding your specific situation, we can produce a repayment plan that will be suited to your means and be attractive for your creditor.
If you require any additional information, simply contact one of our dedicated customer services team on 0800 072 6623 or by email.