Introducing Step Change: Free Debt Charity Advice on 0800 046 5868
Stepchange is a Debt charity that provides free debt advice and money management services to millions of people. This organization is supporting people from the last 25 years. Their main motive is to build a society where people are from problem debt.
Stepchange is one of the UK’s largest debt charity farms that has several offices across the country. With 1,500 associates this charity organization has made its partnership with the stakeholders and becomes a trusted service provider of free debt advice and solutions.
What is Debt? How Many Types of Debt are there?
If you are worried about your unpaid bills then better you understand debt properly before you take any and make yourself stress-free.
Simple Definition of Debt
When you borrow some amount of loan from a bank then that is called debt as you have to return that money to the bank within a certain period of time. When you have to repay that money with the interest then it is called debt financing. Debt loans can be secured as well as unsecured.
Types of Debt
There are different types of debts that one can have. Secured debt, unsecured debt, student debt and many more. All debts are not good debts. Therefore it is important to understand all types of debts properly.
1. Secured Debt
When a borrower borrows loan by pledging his collateral property is known as a secured loan. Before a lender gives you the loan, he checks your credit limits or your capability. In case you will not be able to repay the money then the lender can seize your property or in some cases, he can foreclose your asset.
2. Unsecured Debt
For this debt, you do not need to mortgage your property. Based on your capability and promise, the lender will provide you the debt loan. Although you have to sign a contractual agreement for this loan and if you fail to repay the money then the lender can claim the money from you. For this debt, you have to pay a higher interest rate.
3. Revolving Debt
This debt has a maximum limit and a borrower can take a loan up to that limit on a recurring basis. This loan can be secured as well as unsecured.
4. Mortgages
This loan is the largest debt and comes with the lowest interest rate. With affordable monthly payments, one can easily get this loan. If you do not repay the money within a certain period of time then the lender can foreclose your property.
5. Credit Card Debt
Credit card debt is considered to be an expensive debt. Based on your personal credit score, anyone can get this loan, from teens to 20s. Every month you have to pay your full balance else it can become expensive
6. Medical Bill Debt
Medical bill debt is another type of debt through which you can get a routine check-up and visit your doctor. This type of debt is expensive and better if you pay the bills through credit cards.
7. Student Debt
If you are a student then you can get several benefits out of it. For this loan, you do not need any good credit score or co-signer. These loans are available in lower rates and fees. Student loans can be federal as well as private. For private student loans, you are bound to pay the full amount, on the other hand, federal student loans offer forgiveness.
8. Personal Debt
Personal debt means when you take loans for personal reasons. Basically it is a non-business debt. This debt can be secured or unsecured. The range of the interest rates of this debt generally comes within 5%-36% and for two to five years. In case, if you find difficulties in paying back then you can ask the lender for another plan.
Things You Must Plan Before Taking a Debt
Managing your money is not an easy task. So if you have already taken debt or planning to take one that you must know how to deal with it. Before you invest you must have some proper planning. Here are a few things that you must follow before you take a loan.
1. Get a Household Budget
Before you borrow debt from the bank, you must have a clear idea about your salary, expenses, interests, and deposits, etc. This planning will help you in savings, your spending habits and fulfill your financial goals.
2. Make Proper Plans and Get Debt Free
If you have any debt then make a plan as early as possible so that you can get rid of debt. Always check your credit card reports and credit score as it will help you in the future. Make sure you take a loan where your monthly EMIs will not cross not more than 40 percent of your take-home pay. Thus you can meet all the long-term agreements.
3. Get Sufficient Protection
Before you take a debt, you must protect your assets, health costs, home, and other important properties that you have. For that, you must use insurance policies and health insurance policies. These policies can provide protection to your home and family.
4. Get an Emergency Fund Ready
In some cases, you may face many obstacle situations where you could find difficulties in paying back the money. Maybe you could become jobless or any emergency situation may come. In this situation, you must have an emergency fund that can save you from this situation.
5. Design a Plan that will help you to Reach Goals
It is important to set a goal to manage your debt. Planning can help you to manage your finances properly and help you to pay your bills.
Understand the Consequences
If you fail to pay a debt then you have to face many consequences. Here are the few unpleasant scenarios that you may face discussed down-below.
- The debt collection agency or company will take your debt.
- You will be sent alerts and notification.
- You can lose your credit score.
- Legal actions can be taken against you.
- Your property can be sold out.
What is DMP or Debt Management Plan?
A debt management plan is a program where different debt management companies work with the creditors and help to decrease your monthly payment and interest rates on your debt. This program allows you to pay your debt at an affordable payment scheme with the duration of 3 to 5 years.
Basically this program is a part of the debt consolidation plans. Debt consolidation plan and debt management plan both help people to manage their finances when unsecured debts are deduced.
There are several benefits that one can get from a Debt management plan. With this plan, you can get credit card consolidation without a loan. You will become more punctual and organized with your bills and payments.
The best part is that this plan will increase your credit score as well as improve your credit report. Even many companies offer a debt management plan for free.
What is an IVA or Individual Voluntary Arrangement Plan?
With an Individual Voluntary Arrangement agreement, one can make a deal with the creditors and pay all or part of his debts. Through this agreement, you can get more control over your property or assets. Over five to six years you can repay the money back with affordable payments. There is another agreement called lump-sum IVA that offers you an on-off payment scheme.
The benefit of IVA is that if you can maintain your payments and loans then you will be able to keep your home. Even you do not need to pay any setup fees before the agreement. Once the IVA will be in progress, fees will be included with your monthly payments.
With the lump-sum IVA, you can either pay on a monthly basis or you can make a final settlement with a one-time payment.
Get the Best Support and Help From Step Change
Step change helps you in many ways. With their best expert advice, you can solve all the problems related to your debts. You just need to explain your situation via a step change login account and it will recommend a wide range of practical debt solutions over the phone.
If you want long-term financial control, then step change is there for you with their practical help. This non-profit organization can help you work out your budget as well as your income and debts. After getting all of this information, this organization’s team try to understand your situation and as per that they provide a suitable solution to your debt
You can easily rely on this organization as they will keep your financial information confidential. From debt management plans to bankruptcy solutions, step change can offer and help you with different solutions as per your requirement.
Solutions and Services that StepChange can Provide for You
If you want to know how to deal with the debt problems or if you would require expert advice on debt consolidation loans or the facilities that you can get through credit card or how to manage your credit card better then Stepchange can guide you step by step. The best solutions that you can get from step change are discussed below.
1. Get Debt Advice
Step change collects detailed information about your finances, income, debts and guides you with their advice. After getting full information about your debts, they recommend you any solutions.
This organization uses special debt advice tools that can solve your problems more effectively. They make sure all the solutions that they provide are correct that is why they examine your full financial situation.
2. Provide Bankruptcy Solutions
If you can not repay your money, then step change can guide you whether you should take bankruptcy solutions or not. Bankruptcy has benefits as well as risks. If there is little hope that you can repay your debt within a certain period of time then bankruptcy is the best solution for you.
3. Get Debt Relief Order
A debt relief order can freeze your debt repayments and interest for 12 months. Even your creditors can not chase you during this time. In this certain period of time if your situation is not improved then all your debts will be written off. As step change is an approved organization, their expert team can apply for a debt relief order if you are eligible.
4. Equity Release Advice
If you are above 55 age then you can access the money tied up in your home through equity release. Whether you want to take tax-free cash or want to get flexible plans to manage your home improvement, debt or retire income step-change guide you with the entire process and advise you best equity release options.
5. Mortgage Advice
Stepchange is the best service provider where you can get the best mortgage advisors. Mainly there are two types of mortgage plans are available. One for your Retirement mortgages and another for residential mortgages.
With Stepchange you can avail both the plans along with free advice on the mortgage processes. They will elaborate you all the procedures and terms of the processes so that you can feel confident and can take the right decision.
6. Get the Debt Arrangement Scheme
This scheme allows you to repay your debt on a monthly basis for affordable payments. Your interest and charges freeze and also your creators can not pursue you during this time. If your situation improved then you can repay your money by using a six-month payment break. With Stepchange you can easily set up your Debit payment scheme.
7. Get Protected Trust Deed
With protected trust deed you can reduce your payments for four years. After that, your debts will be written off. The best part is that by using this debt solution, you do not need to present in court. With Stepchange you can make affordable payments over four years.
Get Free Advice From Step Change
If you are looking for free online debt service then Step change is always available for you. You just have to give your full details about your finances through step change contact number and the expert team of the step-change will provide you the best debt solutions for free.
Facing Debt Related Issue and Looking for Effective Solutions?
We are a trusted organization and tied up our partnership with the banks and government and reliable loan companies. All our advisors are well trained and help thousands of people every week.
Our team assists you in every step by giving you practical advice. Here you can find repayment plans, solutions for debt problems and get relief from debt.
All our team members are supportive and deal with your issues in a sensitive manner. No matter how difficult your situation is, our team will examine your situation closely and will find a suitable situation for you.
If you want debt help services then do not hesitate and feel free to call on Stepchange Contact Number 0800 046 5868. We are available to you with our best debt services.
Frequently Asked Question
- Can I Solve My Debt Problems?
-If you want to solve your debt problems then you must control your credit balances as well as your spendings. Try to pay as much money as possible for your debt, try to pay the highest interest debt first.
- Can I get out of debt?
-Getting out of debt is not an easy task but still, there are ways that can help you to get out of debt. First, you have to cut down your expenses and second try to improve your income.
Cutting down the expenses will not be the only solution. For getting out of the debt, you try to find out the better opportunities through which you can increase your income.
- Do I have to face legal Issues if I am unable to pay the debt?
If you are unable to pay your debt within a certain period of time then the lender will contact you and will ask about your issues. if possible they will increase the time period. But if you still can not pay the money back then they can send you legal notice.