Debt management firms are there to reduce your payments to an “affordable monthly amount”. This is definitely a very lucrative opportunity for a person who is struggling to meet his existing bills. In this case, the company will discuss with your creditors for you to try and come to some negotiable point.

Sometimes they would simply freeze your interest. When you pay back to the debt manager, he would simply make your loans repaid.

As a rule, the debt management companies will take your whole first monthly payment to them as an early fee. Subsequently they’ll obtain anything from approximately 15 per cent a month or even greater.

The initial fee directly puts your account into arrears, while the monthly fee unavoidably decreases the quantity going to your creditors, making your arrears last still longer.

You may go to the following places for debt management assistance.

The Consumer Credit Counseling Service ( www.cccs.co.uk),

Citizens Advice Bureau

National Debtline, www.nationaldebtline.co.uk

Payplan ( www.payplan.com) – fee-free debt management company

These are the organizations that would have a talk with your debtors and come to a negotiable point. Some organizations even do this debt management plan for free. Payplan and the CCCS are even better than the rest. They would ask the creditors to pay them a voluntary payment instead of actually asking you.

Secured credit cards are just one of the ways you can use to build credit. This is ideal for people whop are suffering from bad credit history. Secured credit card can be obtained when you open a saving account and even with a small risk on the part of the banker, you can get the credit card. You need to have a very small amount to deposit in the savings account but enjoy all the facilities of the credit card with that. You just need to fit the basic requirements of the secured card provider. It also has an annual fee like any other credit cards.

Pros of secured credit card are:

• You can improve your credit history.
• The secured credit cards can be used for purchasing any type of goods and services.
• Bank will pay interest on your deposit in the account.
• Regular repost to the credit card investigative bureau

Cons of Secured credit cards

• Most of the credit card provider does not want to provide a secured credit card as he would be at a risk.
• Additional changes and application costs are involved.
• These cards are not accepted in most of the places.
• The card issuer might not report to the credit bureaus.

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