Solutions
Solutions
There are various different solutions that can be put in place to help you with your debt problems. Not every solution will be appropriate for every debt problem. We will explain the differences between each solution and under what circumstances each should be used. Below is a brief explanation of the various solutions that can be put in place, to find out more in depth information on each solution, please click on its’ title.
Debt Consolidation loan / remortgage
Is a way of refinancing your existing credit so as to reduce the amount of interest paid each month and thus the monthly repayment, which eases the burden on your monthly budget.
Debt Management Plan
Is an informal arrangement between yourself and your creditors which allows you to make reduced repayments each month and usually reduce the level of interest charged or in some cases stop interest being charged on the amount owed.
Individual Voluntary Arrangement (IVA)
Is a formal arrangement between yourself and your creditors. The arrangement is mananged by an insolvency practitioner who is responsible for collecting the repayments each month and ensuring that you stick to the terms of the agreement. An IVA will can get a significant amount of the debt written off, cease interest and charges, stop creditor hassle and protect your home from your creditors.
Bankruptcy
Used as a last resort, if all other options have either failed or are not appropriate. By declaring yourself bankrupt, you will get the debt written off in its entirety, less any amount that can be raised from the disposal of your assets.