Once you have chosen a particular debt solution to clear off your debts, the next step is to set up an affordable debt repayment plan. Fortunately, by working with StepChange debt charity, their professional debt advisors are responsible for preparing the debt repayment plan on behalf of the individual (the debtor) entering into a debt management plan.
A debt repayment plan is crucial for any debt management plan. It will enable the individual to keep through with the regular debt repayment schedule and ensure that the debt management plan is thoroughly followed without default. Another benefit of a debt repayment plan is that you have to make only one payment to cover all your debts since your debts are consolidated into a single debt management plan.
To work out a practical debt repayment plan, you must provide the StepChange debt advisor with all the correct and complete financial information. They require your recent bank statement and debt details to assess your financial situation and debt concerns correctly. The severity of your debts plays a significant role in determining the right debt management plan. You can check out the StepChange reviews to know more about debt management plans’ various pros and cons.
The monthly debt repayment amount set up in the debt repayment plan is exclusive of your necessary living expenses and priority household bills. The StepChange debt advisors ensure that you will be left with sufficient funds at your disposal even after making regular debt payments every month. Working out a debt repayment plan with StepChange debt charity is easy as no additional charges or fees are included. The debt advisor is responsible for drafting a reasonable debt repayment plan.
With that in thought, here are simple steps to set up or choose a debt repayment plan with StepChange debt charity. StepChange reviews can also provide you with enough details to create a suitable debt repayment plan under any debt solution provided by StepChange debt charity.
Ways to set up an easy debt repayment plan with StepChange
For the StepChange debt advisor to draft a suitable debt repayment plan, you must be accurate with all the information provided.
- Create a checklist of your debts
StepChange debt charity covers all the unsecured debts in its debt management plan. These unsecured debts generally include personal loans, overdrafts, store cards, catalogues, and credit card debts. All these different debts come under one debt category. Hence, when you choose a particular debt management plan with StepChange debt charity, all your unsecured debts are consolidated as one single debt.
Now, you and your StepChange debt advisor can proceed to work out the single debt repayment amount. While you create a list of your unsecured debts, you must include obligations with minimal amounts, along with the interest rate charged. These debt lists will show how much money you owe to the creditors.
The list of your debts includes every type of debt, such as student loans, personal loans, credit card debts, and even mortgages if any. You should also add debts that you owe to your friends and family. For further details on what you can or cannot include in a debt management plan, StepChange review is an excellent place to check out.
- Prioritize your debts
StepChange debt management plans claim to eliminate all your debts via a debt repayment plan. However, there are exceptions which are why you must prioritize all your debts. Because you might want to pay off your credit card debts as soon as possible since they charge the highest interest rate. Clearing credit card debts late will only accumulate high-interest charges as time passes.
StepChange debt advisors might suggest you go from debts with minimum amount to the highest amount if you wish to first pay off the small debts. On another thought, they might also advise you to rank your debts from the highest value to the lowest value. By doing so, you can pay off the debts with the highest value first, which would save up a lot of money in the long run. As per your debts ranking, the StepChange debt advisors will consolidate the debts and negotiate with the creditors regarding the debt repayment plan. After establishing your debt ranking, you cannot modify them at will.
- Identify the monthly disposable funds at hand.
After debt consolidation, the StepChange debt advisors will determine your monthly disposable funds. These extra funds will be used to cover the debts as stated in the debt repayment plan. If you had some unreasonable living expenses every month, you would have to cut down expenses to raise money for the debt repayment plan.
To ensure that you stick to the debt repayment plan terms, the StepChange debt advisors will assist you in preparing a realistic budget depending on your income and expenses and debt repayments. If there are any third-party earnings like bonuses, gifts, or tax returns, those funds will also go into making the monthly debt repayments.
- Focus on paying off the debt highest on your debt lists
Step Change debt repayment plan is easy to follow. If you make more payments to cover the debt first on your debt list, you can get rid of them by paying a lesser interest rate over time. And at the same time, making only minimum payments to cover the other debts on the list. But, if you make equal repayments to all your debts, the debt with the highest interest rate will accumulate high charges by the end of the debt repayment plan.
While these ways to set up a debt repayment plan seem challenging to you, expert StepChange debt advisors can quickly ascertain your debt concerns and finances to prepare a manageable repayment plan for you. Since they will negotiate with the creditors, you do not have to fret over the possibility of dealing with the creditors and their debt pressures.
If you cannot afford to make regular payments as stated in the debt repayment plan, you should directly talk it out with the StepChange debt advisors. If you indeed cannot afford the repayment amount at that moment, they will take steps to modify the debt repayment plan.
StepChange debt charity provides different ways to its clients to make easy repayment. You can make easy payments as per the debt repayment plan via direct debit, standing order, and bank transfer.
To know for sure, if the StepChange debt advisor has curated an easy repayment plan for you, it should be affordable and within your capacity. So if you are totally satisfied with it, you can dial StepChange Debt Charity contact number a step to change your life.