Think Before You Get Personal Debt Relief
Most of the articles you read regarding personal debt problems and solutions will strongly suggest that you should get independent debt relief. This is an excellent suggestion but to be able to get the maximum benefit from such advice it might be worthwhile to sit down beforehand and consider what questions you should put to the debt adviser and what you want to get out of the process. Roy Keane had a favourite phrase: ‘Fail to Prepare, Prepare to Fail’.
Before seeking personal debt relief, take some time to prepare for the face to face encounter with the debt adviser and consider the questions you want to put to them. After all, at the end of the meeting, you will be faced with choices as to what action you may want to take to address your debt problems and you can be overwhelmed with information about your options. Here are a series of ten simple questions to help you prepare for your meeting. For each of the options or solutions suggested by your debt adviser, you ask the same questions and jot down the answers so that you can compare the solutions with each other afterwards. Do not be stampeded into going for a particular solution too quickly until you have considered the merits of the other solutions.
Question 1: Following implementation of the solution, will you be free of all debts so that your creditors will be unable to pursue any further claim against you?
Question 2: Is the solution binding on all your creditors or can some or indeed all of them opt out, as it were?
Question 3: Will your debts be frozen at the beginning of the process or can some or all of your creditors continue to apply interest or penalties to your debts?
Question 4: Will your home be at risk?
Question 5: How long does the process, (i.e. the implementation of the solution) last?
Question 6: How will the solution affect your credit rating both during the process and after implementation is completed?
Question 7: Will the solution affect your employment? Does you employer need to be informed that you are planning to enter into a debt settlement arrangement with your creditors. Does your employment contract or the conditions of any regulatory body overseeing your profession or your contract of employment impose any sanctions in regard to your adopting any particular debt resolution process?
Question 8: What fees will you have to pay if you adopt any particular solution? Will any fees have to be paid up front? Will fees come out of the monies you will be repaying to creditors or will you have to pay the fees separately? When will payment of fees commence?
Question 9: Will any priority debts such as income tax, mortgage, rent, utilities, council tax, court fines and maintenance payments have to be paid in full? What debts will not have to be paid in full?
Question 10: Are you confident that you will be able to keep up the payments under the particular solution being considered for the full duration of that proposed solution?
Remember, your debt adviser may take you through half a dozen or more possible solutions. Be prepared to ask these questions in regard to each solution and make a note of the answers. Take Roy Keane’s advice and do not fail to prepare. A good debt adviser will cover all of these questions without being asked but why take the chance that you may be dealing with a less than competent person?