Time to restructure your debts ?

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.