Exploring Different Options For Dealing With Debts And Health
When it comes to sifting between different options available for managing your debt and finance, it is important to make sure that you choose the best option that best suits the circumstances and your affordability. It is unwise to choose an option and then give it up in the middle of the process. This will further jeopardize your debt as well as your financial health.
In turn, it will affect your health, both physically and mentally as it is established that debt affects the health of the debtors. It is natural that you may find choosing a suitable option for your overwhelming because:
- There are several debt relief option available and
- You do not know how each might turn up in the end.
In order to make the right choice, you will need to ask yourself several relevant questions to determine the condition of your debts as well as your assets, income and cash outflows and all other aspects. In short, all these will help you to:
- Figure out the amount of money available in your hands
- The amount that you owe to your creditors
- The amount that you can pay to them every month and most importantly
- The options are available to you to manage your debt most effectively and successfully.
Such knowledge will help you to create a reasonable and pursuable monthly budget and craft a proper debt management plan that will be easy for you to stick to.
The options available
Not having tried it out ever, you may not know about the options available to manage your debt just as the way you should be. In fact, there are lots of debt management options available. When you visit sites like NationaldebtRelief.com and others to look for options for dealing with your debts you will find that it ranges from informal debt management routes to most formal and commonly taken routes.
- As for the informal debt management route you can get in touch with your creditors to explain your debt and health situations and negotiate for a reduced and favorable payment term.
- On the other hand, you can take the formal route of consolidating your debt or even the insolvency option of filing for Chapter 7 or Chapter 13 bankruptcy apart from several other options available in between these two.
If you talk to the debt advisers they will use different online tools to explain you about the pros and cons of each of the available options. They will also refer to a fact sheet that will give you an in-depth overview of all of these debt relief options or any one particular debt option that they and you feel would be suitable for your current condition.
Writing off debt
Assuming that you are experiencing severe health issues, especially mental health issue due to your unmanageable health, you can then choose the debt write off option which is permitted according to the law. However, there are a few things that you should know before you jump on to a final conclusion. These are:
- This actually is the last resort that people fall back on especially when they find that their situations are highly unlikely to become better with time.
- This is also an option for those people who do not have any money to pay their debts or any assets that they can refinance or use in other ways to earn the desired money to clear off their debts.
The creditors are however not obligated to agree to this intention of yours but if you follow the right process using the proper write off the debt sample letter and ask them to consider your case with aggressive persuasion, you might be lucky. In addition to that, you must also refer to the Good Practice Awareness Guidelines while asking your creditors to write your debts off if you suffer from severe mental health conditions.
Though these are the simple guidelines issued by the Money Advice Liaison Group, MALG it will suggest your creditors that they may consider writing off your unsecured debts if your mental health conditions are severe, long term and there is no ore very little chance of repaying the debts. Professional debt advisors can help you in this regard as well.
Credit and spending
There are a few specific mental health conditions that may make situations worse and difficult for the sufferer to manage their debt and money. It is seen that such patients tend to take on more debts than they can really afford to repay. They even use their credit on purchasing things that they do not need really.
These acts eventually make their debt situation worse and more stressful increasing it to an unmanageable level. They eventually find it difficult to keep up with the payment terms as agreed with their creditors.
In such situations it is very helpful if you add a ‘notice of correction’ to the credit reference file.
- This is a 200 words statement that will explain your financial as well as mental condition to your creditors.
- When you add this notice of correction it will signify that you application will be considered after proper human scrutiny and not just based on a computer score.
- You will have to use standard wordings and phrases to write this notice for correction and for that you can ask for help from the credit reference agencies.
- When there is a notice of correction attached with your application it will usually take a longer time to assess your file. This will give you longer time to reconsider this option so that you do not make any unnecessary applications for credit, if you are likely to do so.
- Ideally, a notice for correction acts as a short-term measure and you can remove it any time if you wish to.
However, given the fact that only those organizations that check your credit reference file actively will look at the notice, you are advised to review whether or not you require such a notice of correction on a regular basis.