When facing debt problems, it’s important not to suffer in silence. Financial worries will most likely bring you unnecessary shame, as you probably don’t want your loved ones to know your current circumstances. However, wiping on a smile and pretending to both yourself and the world that it’s not happening will only result in further heartache down the line.
Thankfully, there are debt solutions out there that can eliminate your debts and help you tackle those bills head on. All you have to do is take a look at the many services on the market to identify the best option for your needs. You can choose from a debt management plan to debt consolidations to an IVA. Not sure what any of this is? Not to worry, we can provide you with a little background information on each solution to help you make an informed choice.
Debt Management Plans
Debt management plans do exactly what they say on the tin: it’s a plan that helps you effectively manage your debts. Sounds good, right? That’s because it is. A debt management plan can reduce your monthly outgoings to smaller, affordable amounts that complement your financial circumstances. So, instead of paying numerous large figures to various lenders, you’ll pay a smaller amount to one lender each month. It really is that simple.
Debt Consolidation Loans
Debt consolidation loans are a little similar to debt management plans, as they aim to reduce your monthly outgoings, with you making one affordable monthly repayment. You can therefore replace multiple debts with just one, allowing you to take greater control of your finances. However, please be aware that debt consolidation loans are not designed to deal with serious debt problems – so be sure to read on if you do have unmanageable debts.
Do you have 12,000+ of unsecured debt? If so, an IVA might be just the thing you need. An IVA is basically an agreement between you and your lenders and could ultimately clear your unsecured debts, with you paying back less than you owe, in most cases. Just like debt management plans and consolidation loans, you will pay back just one affordable amount each month for a fixed period of time; however, a typical IVA lasts approximately 5 years until the debt is written off. You can therefore trust you’ll be debt free once the 60 months is up!
Bankruptcy is something that should never be entered into light heartedly. If you are considering bankruptcy then the chances are you are suffering from serious debt problems. However, sometimes it is the best solution as, whilst your assets will be shared amongst your lenders, 100% of your debts will be written off and you can move forward with your life.
Are you or someone you know suffering from debt? Contact an experienced and established debt management company today. You can also talk to the Debt Advice Foundation for free, confidential debt advice.