3 potential debt solutions to deal with debt
Designed to put you back on track
IVA's
Help if your debts are over £5,000
An IVA (Individual Voluntary Arrangement) can help you write off the debts you cannot afford. Debts that qualify for an IVA can be cleared in a set time period (usually 5 to 6 years).
An IVA is a legal process by which you can gain protection from your unsecured creditors by entering into a legally binding repayment agreement with them, which is then supervised by a licensed insolvency practitioner.
Debt Management
Help if you have debts of £2,000 and over
Debt Management allows you to pay one affordable monthly payment for all of your unsecured bank loans, credit card repayments and your other debts.
Firstly the hassle of dealing with your paperwork and and day-to-day dealings with your creditors is taken away. Secondly, our selected debt partners will look to negotiate the freezing of charges and interest on your accounts to help stop your debts increasing.
Bankruptcy
Help if you have little or no disposable income
If you are facing bankruptcy then it is important to speak to a professional debt advisor before proceeding with bankruptcy.
Fresh Finance was set up to deal specifically with cases of serious debt that require immediate expert help. Advice is given both on avoiding declaring Bankruptcy and also how to go through the whole bankruptcy process.
Disadvantages
No obligation
Creditors are not obliged to agree to a Debt Management Plan nor freeze interest and charges.
The right schedule
Sometimes rescheduling your Debt payments can lead to an increase in the total sum repaid and can extend your repayment period. Debt advisors should advise you an estimate for the total repayment period and length of time for the plan subject to your creditors accepting the arrangements.
Keeping up your repayments
Failure to keep up your repayments once on a repayment plan is set may result in arrangements with your creditors to be broken.
Your Credit Rating
Your credit rating is likely to be affected by Debt Management, Bankruptcy and IVA's.
