Debt Management Plan? Do You Owe Less Than £10,000?

A debt management plan could be the answer if you have unsecured debts of less than £10,000 or your debt problem is just in the short term. Debt management effectively gets you out of debt by allowing you to make repayments that you can afford.

The debt management company will negotiate on your behalf with your creditors and provide evidence that you are unable to afford their current repayment levels. They will arrange one single lower monthly repayment which you can afford. This is paid to your debt management company who then distributes payments to your creditors.

In the vast majority of cases the debt management company has arrangements in place with creditors that enables them to have interest payments stopped upon entering in to the debt management program.

If you have problems with your current finances or have had problems in the past then this makes it even more important to receive good advice. Don't put it off any longer, take your first steps on the road to financial freedom. So fill in our short form today.

IVA or Trust Deed - Do You Owe More Than £15,000?

IVA which is an Individual Voluntary Arrangement is a government scheme to help you if you have debt problems. An IVA is a formal legal repayment agreement between you and your creditors for residents of England & Wales.

An IVA allows you to make reduced monthly payments to your unsecured creditors in order to pay off a percentage of what you owe. This arrangement is usually over 5 years and in many cases you can write off up to 75% of your debt. During the IVA, the creditors are legally bound to freeze the interest on any outstanding debts and to cease adding late payment charges to the debtors account.

The creditors are forbidden from contacting the debtor with regard to the outstanding debts, whether by telephone, post, or email, as any correspondence must be passed through the appointed Insolvency Practitioner. The size of the monthly repayments to the IVA are based on what the debtor can realistically afford throughout the term of the IVA. Any outstanding debt is legally written off. Get professional debt advice today.

If you live in Scotland read the Trust Deed section below which is a similar programme.

Trust Deed - Do You Owe More Than £10,000?

Scottish Trust Deed is a goverment scheme for scottish residents to clear debt problems. It is a formal legal repayment agreement between you and your creditors i.e. people you owe money to where you agree to repay a percentage of your total debts based on what you can realistically afford over a period of 36 months.

The remainder of this debt will then be written off and you will be free from debt. It is similar to an IVA which provides for residents of England and Wales.

A Trust Deed provides you with an insolvency practitioner who will negotiate with your creditors on your behalf. This person will be known as the "Trustee". They will arrange a monthly payment scheme based on what you can afford.

This arrangement is over 3 years and in many cases you can write off up to 85% of your debt. Monthly payments are based on affordable disposable income, any outstanding debt is legally written off.

If you are currently struggling and have debts over £10,000 a Trust Deed could be the answer. For Professional Advice and help apply online today.

Considering Bankruptcy? There Are Other Options!

Bankruptcy is the final debt management option and should only be considered as a very last resort. There are alternatives to bankruptcy, notably an IVA or Trust Deed.

The more you ignore your debts, the worse they get. If you don't do something about them you could wind up being the subject of a bankruptcy order. That really is the final step, there are many options if you acknowledge the debt and finding help could be the answer.

If it's past that and you can't pay back the money you owe, bankruptcy could be the only option left. And it's not always a voluntary thing, a creditor can apply to make you bankrupt and they don't have to ask your permission.

You can also make yourself bankrupt, but it's not that simple and the effects can be enormously damaging. Your creditors will have the right to seize your assets in order to sell them and get their money back. Your future earnings could be affected, you won't be able to own a business and there are certain jobs that you are not allowed to do.

In some cases, your bankruptcy may actually last for longer than a year, it could be extended for up to 15 years. This would only be the case if the trustee believes that something untold has happened with your finances.

In conclusion, it can be seen that bankruptcy is no easy way out of having to pay off your debts. It really is the final option and should only be considered if IVAs, debt management plans and consolidation loans can't help you.

There are loads of alternatives to going bankrupt and we can explain all the options. Don't put it off any longer, take your first steps on the road to financial freedom. So fill in our short form today.

1. Only pay what you can afford
2. Most of your unsecured debt can be written off
3. Freeze interest and late payment charges