Debt Relief – Solutions for You to Help Manage Your Debts

Getting relief from your debt problems is a great feeling, but which method of debt relief is right for you?

Debt Management

Debt management could be an option If you’ve got at least 2 different creditors, owe a minimum of £1500 and are a homeowner or tenant.

The benefits of debt management are;

You will pay a manageable monthly payment
Your interest and charges may be frozen
We can negotiate a debt management plan with your creditors on your behalf
You will get valuable breathing space to focus on a long term debt solution

Debt management plans are designed to be a short term solution for debt relief when your debts have become unmanageable. Debt management plans are not legally binding on your or your creditors.

Individual Voluntary Arrangements (IVAs)

To be eligible to apply for an IVA, you must have at least 3 different creditors, owe at least £12,500 and be either a homeowner or tenant.

The main benefits of an IVA are as follows;

All interest and charges on your debts will be frozen You pay 1 manageable monthly sum each month which is distributed amongst your creditors Providing you comply with your IVA, you will be debt free in just 5 years Your creditors are not allowed to contact you to chase for payment

It’s worth noting that IVAs are legally binding agreements and if you fail to make your monthly repayment as agreed without good reason then your creditors can petition for your bankruptcy.

Trust Deeds

Trust deeds are the Scottish equivalent of an IVA. You must be resident in Scotland to apply for a trust deed and have at least 2 creditors to whom you owe a minimum of £6000.

You can be debt free in 3 years if you make all your repayments on time
You will only have to make 1 monthly repayment which is then distributed to all your creditors
A percentage of your overall debt may be written off completely
Your interest payments and charges won’t accumulate

When applying for a trust deed it’s important to be aware that you will have to release any equity in your home for the benefit of your creditors.

Bankruptcy

Bankruptcy is the most severe form of debt relief and you must have a minimum of £10,000 of debt, be a homeowner or tenant and a UK resident to be eligible.

Debt relief – the responsibility for repaying your debts is taken from you by the courts

Your creditors are legally bound not to contact you once your bankruptcy order is in place

Contrary to popular belief, you will not have all your possessions taken away

After 12 months your outstanding unsecured debts will be written off completely

Depending on your circumstances, bankruptcy could result in you losing your home and your job, so it’s not something to be entered into lightly.

Don’t go on suffering in silence because of your debt problems, call us free on 0800 002 9989 for confidential debt relief advice.