Debt Advice and Help from reducedebt.co.uk
Worried about debt? Constantly juggling credit cards every month? Mortgage arrears creeping up? Don't let your debts give you another sleepless night.
You probably have seen tv commercials offering consolidation loans as the best way of having just one debt instead of 4 or 5. It is an option but you are technically extending your debt and there are other options.
UK Debt Management
Trying to negotiate with your creditors can be a daunting prospect especially if you are not certain what your rights are. If you use a Debt Management company to negotiate on your behalf it will help you avoid this. The company may also offer to share out your payments to multiple creditors on your behalf meaning that you only have to worry about a single affordable payment each month.
UK Debt Consolidation
Debt consolidation may seem like one of the best options available, but you should consider other options before deciding. Debt consolidation can lower the amount you pay each month and make your debts much more manageable. More and more people are using loans or remortgages to consolidate their debts and make their finances more manageable.
Bankruptcy
Bankruptcy is one solution to overwhelming debts that you will never be able to repay. Bankruptcy is the most severe result of being in serious debt. By declaring yourself bankrupt you do get protection from your creditors but there are also many negative points you should be aware of.
Independent Voluntary Amount (IVA)
An IVA is a negotiated deal with your creditors that allows you to repay your debt in an agreed number of monthly installments over a fixed period of time, often five years or less.
If you own a property, you will normally be expected to offer creditors a sum of money in place of a proportion, usually 50%, of your equity. You may also offer your creditors a lump sum to settle your debts through an IVA.
Informal Repayment Plan
An Informal Repayment Plan is similar to an IVA in that it is an agreed deal between you and your creditor. It can be used by anyone with a debt problem; however, it is best suited to those with debts of less that £15,000 with less than four different creditors. It is recommended you should be able to afford a total monthly payment of at least 1% of your total debt.
