Debt Solutions
July 19th, 2008 | by admin |Last year over 1.7 million people sought debt advice and counselling, this figure is set to increase due to the credit crunch. More and more people are trying to find ways to get themselves out of the ever increasing debt trap.
In the UK there are several options available when faced with a debt crisis. You can choose from IVA’s (Individual Voluntary Management), Remortgaging, Debt Consolidation, Debt Management, and even Bankruptcy which is the last straw for many.
Debt consolidation is where you or a specialist company negotiates with all your creditors and you make a one off payment to them every month. The company will look at your income and outgoings and will help you decide on a payment that you can afford. Often a debt consolidation plan is for six years and you must stick to the regular payments.
Debt management is fairly similar to a debt consolidation plan. One such debt management company is the debt advisory centre. They negotiate with your debt creditors to arrange a payment plan that you can afford which you pay through the debt management company. All interest is freezed so you only pay what you owe at the time of contact. All demands are stopped and even the amount you owe may be reduced. Once again you must stick to your monthly repayments.
Remortgaging your home is a common method of regaining control of your finances but a risky one especially at this time with the credit crunch. You may be able to reduce your debt considerably by asking the creditors if they will accept a smaller lump sum to clear the debt. By remortgaging you can release cash to pay off your debts and stop creditors demanding money but if you miss your mortgage payments you stand to lose your home so this is something to consider with utmost care.
An IVA is similar to a debt management plan but this is legally binding and you must be able to afford to pay £200 a month towards your debt. However your credit record is repaired after completion.
For free impartial no obligation and confidential debt advice on debt over £15k CLICK HERE, for smaller debts and IVA advice CLICK HERE