4 potential debt solutions to deal with debt
Designed to put you back on track
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
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.
The hassle of dealing with your paperwork and and day-to-day dealings with your creditors is taken away and negotiations will be made with your creditors for the freezing of charges and interest to help stop your debts increasing.
Help if you have little or no disposable income
If you are considering bankruptcy then it is important to speak to know the key facts before making an application.
Bankruptcy is the long - established formal legal process for writing off unmanageable debt. This process is under the control of the Official Receiver
Debt Relief Orders
For those with little spare income and non homeowners
A DRO is another formal legal process under the control of the Official Receiver for people with disposable income, assets, and debts all below certain limits. Debt Relief Order (DRO) is a personal insolvency process.
DROs are one way to deal with your debts if you owe less than £30,000, don’t have much spare income and don’t own your home.
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. You should be advised of 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, DRO's and IVA's.