What debt solutions are available?

If you’re experiencing severe financial problems then there are a number of options that could be available to you:

Individual Voluntary Arrangements (IVA’s) can help you to become debt free in 5 years. If you’ve got an unmanageable amount of unsecured credit such as credit cards, store cards, personal loans or bank overdrafts an IVA could allow part of your overall debt to be written off. An IVA is a legally binding agreement that lets you make an affordable monthly repayment to your creditors.

See if you qualify for an IVA here.

Debt consolidation loans are another debt solution that may be available to you. This involves taking out a single loan which pays off all your unsecured creditors, leaving you with just one payment to make each month and ending the hassle from your existing creditors. You must be aware however, if you can’t keep up with the repayments on a secured debt consolidation loan your home may be at risk of repossession.

Debt Management Plans are an informal agreement between you and your creditors which allows you to make a reduced monthly payment. The disadvantages are that this agreement can be changed at any time, you will still have to pay back the full amount you owe and not all your creditors may agree to the plan.

Bankruptcy is often considered the last resort when it comes to solving your debt problems. It’s a legal process which could mean your home being sold off and losing your job. Bankruptcy should only be considered when all other avenues have been discounted.

If you found this answer helpful you may also want to look at the following:

Where else can I get online IVA & Bankruptcy advice?