Consider this question: Are you sailing in the same boat ?
I am a Nairobi businessman who has
had a fair share of success and debt. At the moment, I am growing and expanding
my venture and would like an individual or firm with expertise to handle my
debt portfolio so that I dedicate my time and energy to growing my investment.Can
I get a firm or individual to give me a consolidated amount of debt to settle
at the end of the month? The individual or organisation should manage my debt
and handle all the queries and discrepancies for me.
Obtaining a debt manager is an
option towards financial freedom. However, it is important to establish if
dedicating your time and energy to growing your investment while a third party
handles your debt is more profitable.Having a good financial record of all your
assets and liabilities is prudent in gauging your indebtedness. When looking
for a debt manager, you will need to draw up a complete list of your current
debts to determine the total amount of your outstanding bill.
Evaluate the interest offered by
various financial institutions with the aim of getting a better rate if you
must get a loan to offset your bills.Be aware that many lenders offer debt
management but generally charge a higher interest rate compared to, say,
accounting firms. Before entering into any agreement, it is important to review
the terms and conditions, that is, interest rate and special charges, so
that you know exactly how much the loan will end up costing you.
Dealing with debt managers will
increase your expenses due to the interest and charges of set up fee and
handling costs each time they offer you a service.Assess your current financial
status and establish if the state of debt is temporary and whether it is likely
to improve. If so, the debt management plan could be the best option.
However, avoid debt managers if your
capability to pay bills will not improve in the next 12 months and/or if your
bills would grow as a result of paying fees to a commercial debt advice agency.Ultimately,
the final decision comes down to your assessment of whether you deem the
service worthwhile and whether you trust yourself to make the payments without
the assistance of a third party.
Having a debt manager means it will
take longer to repay your claims, so you should avoid using a debt management
company unless you feel it is a must.
