Debt Management Solutions

If you are facing serious debt, you may find it comforting to know that there are a number of debt management solutions available to help ease the burden. However, which debt solution is best for you will depend on your individual financial situation. When you call the Debt Advice Trust one of our competent and experienced debt counsellors will be able to help you analyse your financial situation and help identify which of the debt solutions is right for you.

The main debt solutions available to you include an Individual Voluntary Agreement, debt consolidation, a debt management plan, and as a last resort, bankruptcy.

An Individual Voluntary Agreement, or IVA, is a formal agreement that you enter into with your creditors and is often helpful if you are in serious debt of over £15,000. Often an IVA is managed by a specialist company, which helps reduce the stress of contacting your creditor personally. If an IVA is agreed your creditors will write off, some of your debt and you will be able to repay the agreed amount over a set period of time, usually 60 months. As a debt management solution an IVA has less of an impact on your future financial standing than, say, bankruptcy.

For smaller debts, an effective method of regaining financial stability is a Debt Management Plan, although you should check whether another debt solution, such as IVA, is more suitable first. A Debt Management Plan is ideal for people with a regular income as you agree to pay a certain amount each month to a company who then negotiate with your creditors. It is similar to an IVA although the term of the repayments can be longer.

Debt consolidation is another of the debt solutions that may be appropriate. Consolidation involves taking out a single loan to repay all of your debts and then repaying the new single loan. This can be an effective debt management solution if your circumstance allows you to take out a new loan and if your overall debt is fairly low.

To find out which is the most suitable course of action for you call the Debt Advice Trust now for free impartial advice.

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