Creating A Better Debt Management Plan

In the Virgin Islands, consumers face debt review options for settling those debts without filing for bankruptcy. Effective strategies involve creating a more proactive plan that addresses all outstanding balances more affordably. A local financial advisor reviews the consumer’s debts and sets up a better debt management plan.

Start With a List

The consumer starts by preparing a list of all debts and their current balances. The debts are grouped according to their status. Each item is classified as open or closed. The financial advisor calculates the total for each group and creates a plan for settling each group of debts.

Set Up a Plan for Open Accounts

The open accounts are included in the consumer’s current budget. The advisor calculates the total payments for each pay period. Typically, the mortgage is deducted from the paycheck received before the payment date. Household expenses are managed according to the due date provided by the utility companies. All additional debts are added to the budget based on the paycheck value for each pay period. The key to the budget is to set up a plan that prevents late fees and additional charges.

Negotiating Settlement Offers

Closed accounts are often sold to collection agencies and remain on the consumer’s credit history. Financial advisors negotiate with collection agencies to obtain settlement offers. It is possible for the consumer to receive a settlement offer that is less than half of the total balance. The offers are also available through installment plans.

Adding Charged-Off Debts to the Budget

Any installment plan obtained by the financial advisor is added to the existing budget. Adjustments are made to the budget to prevent a financial hardship. Typically, the closed debts are added to the budget one at a time and until each debt is paid off.

In the Virgin Islands, debt management plans start with a complete assessment of all debts. The plans provide consumers a more comprehensive budget that adds closed off accounts at a steady pace. The budget includes all current household expenses and monthly debts. It prevents new late charges and fees. Consumers who need to set up a better debt management plan can contact David Johnson Cane Bay now.