When you are trying to resolve your debt problems, you will be looking for that one debt solution which stands out from above the rest; the one debt solution which is perfect for your financial circumstances.
It can sometimes be difficult to know which one debt solution is right for you, especially if you are unsure about what debt solutions are on the market and who they are suitable for. This article aims to highlight a number of different debt solutions which have successfully helped our clients deal with their debt.
The following debt solutions offer a generalisation only, and the only way to discover the one debt solution for you is to seek professional debt advice. Our One Advice debt advisors are only a phone call away, call now on 0800 048 1752.
Debt Management Plans: Debt Management Plans are flexible agreements between you and your unsecured creditors where you agree to repay debts at an affordable rate over a longer period of time.
All of your unsecured monthly debt repayments can be able to be included in your debt management plan and you just need to make one single monthly payment, which is distributed between your creditors. This is one debt solution which many people opt for when they are servicing low levels of debt, typically under £12,000.
Individual Voluntary Arrangement (IVA): If your debts are over £12,000, one debt solution to consider is an IVA. IVAs allow you to repay the affordable percentage of your outstanding debt over a typical period of 60 months. As long as you stick to the agreed IVA repayments (which should be affordable as they are based on your own set of financial circumstances) any unpaid debt will be written off and you should not have to declare bankruptcy.
This is one debt solution that many homeowners opt for as they do not have to risk losing their home, unlike you would if you declared yourself bankruptcy. Your home can be excluded from your IVA proposal, although you may have to release some of its equity.
Trust Deeds: One debt solution exclusively for residents of Scotland who are not be eligible for IVAs, as this is only legislation in England, Wales and Northern Ireland. Like an IVA, a Trust Deed means that you commit to repaying an affordable proportion of your debt over a fixed period of time, usually 36 months. Like an IVA, the unpaid unsecured debt which has been included in your Trust Deed can be written-off on successful completion of the Trust Deed term.
Bankruptcy: Bankruptcy is the most extreme of all the debt solutions, and is the one debt solution you should only consider after all others have been fully explored. If you do decide to opt for bankruptcy, you will be pleased to know that One Advice have our own dedicated Bankruptcy Service which can make the process of bankruptcy a little easier.
This gives you just the basis about a range of debt solutions which One Advice offer. Unlike many other similar companies, we can offer the full range of debt solutions meaning that we will ensure that the debt solution is right for you. To discover more about which one debt solution is right for you, call our advisors now on 0800 048 1752.