YOUR DEBT SOLUTIONS
With many debt solutions available to you, getting out of debt and back in control of your finances is probably one of the best decisions you could make.
Outlined below are some of the debt solutions that you can utilise to help you get out of debt.
With 18 different debt solutions available to you, choosing the right solution can be a minefield. Contact one of our friendly debt counsellors to discuss the best solution to your specific situation today.
A payment plan, managed for you by the County Court. Debts can sometimes be written off.
Arranging payment with creditors
Contact any creditors you are in arrears with and make an arrangement with them to catch up.
A legal process that writes off your unsecured debts. Bankruptcy can offer you a fresh start.
Debt arrangement scheme (DAS)
A debt payment programme is part of DAS. You’ll pay back what you owe, based on what you can afford.
Consolidating debt usually means taking out credit to reduce monthly payments or the number of creditors.
Debt management plan (DMP)
You make a single monthly payment, based on what you can afford and it’s shared among your creditors.
Debt relief order (DRO)
Debt are frozen for 12 months and, if your financial situation hasn’t changed, they will be written off.
Individual voluntary arrangement
An IVA is a formal agreement where you repay an affordable monthly amount over five or six years.
Being insolvent means you can’t afford to pay back your debts at the time they’re due.
Minimal assets process (MAP)
MAP is a way of going bankrupt for those on lower incomes with fewer assets.
Protected trust deed
This is a formal agreement where you repay an affordable monthly amount over four years.
If you’re at retirement age, you could use equity release to access money that’s tied up in your home.
Remortgaging to pay off debt
A remortgage is when you replace your existing mortgage with a new one.
Selling assets to pay debts
An asset is anything you own that has a value. You may be able to release money from assets.
Surrendering your property
If you can’t afford to continue making mortgage payments one option is to sell your property.
Some creditors may be willing to accept an offer lower than the amount you owe to clear your debts.
Also known as full administration bankruptcy. A legal process that writes off your debts.
Temporary repayment plan
This is when you make a small payment to your creditors because you’re unable to afford to pay more.