What Debt Solutions are Available?
There are various types of debt solutions available, each of which is designed help those struggling with debt. The right one of you is dependant on your individual circumstances, and a debt solution which is right for you may not be suitable for someone else.
If you are in debt and looking at what debt solutions are available, the list of solutions which you find may be a bit daunting and you may feel as though you don’t quite understand which of these available debt solutions is right for you; this is where One Advice come in. We can offer you personalised debt advice which can act as a starting block to help you decide upon the right debt solution.
Below offers a debt solutions comparison list of all the main types of debt solutions you will hear about. But, before deciding what to so, please ensure that you get expert debt solutions advice. We could help advise you on which type of debt solution you are suitable for, and which of these available debt solutions might be right for you.
Debt Management Plan
These Debts solutions are available for…. This debt solution is best suited to those who are struggling with debts under £12,000 and are looking for a way to make their monthly outgoings more affordable. It allows you to repay your debts in full over a longer period of time.
Debt Management Plan as a debt solution… A debt management plan is an informal agreement between you and your unsecured creditors which can involve a debt management company, such as ourselves asking your creditors to accept a reduced monthly payment towards your unsecured debts. This means that you will be repaying your debts back at a level which is affordable to you.
Considerations of a debt management plan… Although making a lower monthly payment does not sound like a consideration to begin with, it is important to note that it will take you longer to repay your debts in full, and some creditors will not freeze additional interest or charges on your debt.
Individual Voluntary Arrangement (IVA)
These Debts solutions are available for…. As a debt solution, IVAs are most suitable for those who are struggling with high levels of unsecured debt (£15,000) who cannot see themselves as ever being able to repay this debt and are struggling with their repayments. As a debt solution, an IVA is suitable for those who wish to avoid bankruptcy and can commit to making reduced payments.
IVA as a debt solution… An IVA is a formal legally binding contract between you and your unsecured creditors where you agree to repay your debt at a level that is affordable for a typical period of 60 months. Any debt which is not repaid upon successful completion of your IVA will be written off.
Many homeowners opt for an IVA over bankruptcy as the sale of your home is unlikely, although you may be required to release some of the equity in your home.
Considerations of an IVA… You must commit to making agreed monthly payments for the full term of the IVA and failure to meet these repayments means that bankruptcy proceedings could be started by your creditors.
This gives you only a sample of what debt solutions are available as you may find that your circumstances are more suited to bankruptcy or a debt consolidation option. If you are looking for further information about the type of debt solutions available then please do not hesitate to get in touch with our professional debt advisors.