If you can no longer afford to meet your credit commitments, you need to act fast to get things under control. There’s no use burying your head in the sand, as the problem won’t go away on its own. However, the good news is that are plenty of options available to help you clear your debts.
What’s the best debt solution for me?
The right solution for you will depend on your individual circumstances. For example, the size and type of your debts, whether you own your home and how much (if anything) you can afford to repay your creditors.
There’s a huge amount of information out there about the different debt management solutions and how they work, and it’s easy to feel confused or overwhelmed. That’s where speaking to a qualified debt adviser can help.
Three of the most common debt solutions that might be available to you are:
1. Debt management. This might be a suitable choice if you owe unsecured debts such as credit cards and payday loans that total more than £3,000 and you’re able to pay your creditors at least £100 a month. It might take you a while to pay off your debts, but we may be able to get your creditors to freeze interest and charges on your accounts, relieving some of the pressure. Debt management is also an informal solution that offers more flexibility than some other options.
2. Individual Voluntary Arrangement (IVA). You could consider an IVA if you owe more than £8,000 in unsecured debts to multiple creditors and can afford to pay your creditors at least £100 a month. Unlike debt management, an IVA is legally binding and you must stick with it for five or six years. On the plus side, you’re unlikely to lose your home if you own your property and you’ll have legal protection from your creditors. Best of all, any leftover debts within the IVA will be cancelled when it ends – helping you clear your debts once and for all. Read more.
3. Bankruptcy. Forget the old-fashioned stigma around bankruptcy. Times have
changed and it’s now potentially a viable option for anyone with serious debts and little or no assets or income with which to repay them. Yes, there are still restrictions and implications that you’ll need to consider very carefully before going ahead. But if, like many bankrupts, you end up being discharged after 12 months, you could be leaving most or all of your debts behind in just a year’s time. And of course, our team will be on hand to support you every step of the way, from helping with the paperwork to offering advice on your court appearance.
Of course, there are many other ways of dealing with debt. These include:
An Administration Order
A Debt Relief Order (DRO)
Consolidating your debts
Full and final settlements
Token payments (a temporary measure).
How do I get started?
Simply get in touch with NationalDebtLine. who will be able to provide you with further guidance. Once you’ve decided how to clear your debts, their expert advisers will implement your chosen solution and offer ongoing help and support.