Debt Solutions
Personal Debt Solutions
There are a range of options available if you’re struggling with debt, but it’s important to choose the right debt solution for your financial position.
Debt Management
- Debt management is an informal agreement between the debtor and the creditor, with the aim of becoming debt free and is more suitable for smaller debts.
- The agreement involves negotiating a debt management plan (sometimes with the aid of a third party) with an aim to become debt free.>
- Due to the non-legally-binding nature of a debt management plan, missed repayments aren’t punished with threats of repossession or court summons.
- Be wary of disreputable firms offering debt management.
Individual Voluntary Agreements (IVAs)
- Individual Voluntary Agreements are a more secure way out of debt than debt management plans.
- IVAs act as a formal agreement between a debtor and their creditors with a view to repaying debts, usually over a period of five years.
- To apply for an IVA, you should have unsecured debts of at least £15,000 and be capable of paying £200 per month towards the IVA.
- You should have a regular income and debts from at least three separate organisations.
Trust Deeds
- Trust deeds are only available to residents of Scotland.
- A legally governed procedure, trust deeds are usually set out over three years.
- Payments are monthly and dependent upon what you can afford.
- Following the agreed repayment period, the remainder of the debt is written off.
Debt Consolidation Loans
- Debt consolidation loans can be obtained through a secured loan on your property or an unsecured loan.
- They shouldn’t be considered if you cannot afford the regular monthly repayments.
- Try a debt budgeting calculator before you take on a debt consolidation loan.
Bankruptcy
- Bankruptcy is a useful way of becoming debt free but should only be considered if all other routes have been investigated, and are unfeasible.
- It will release you from overwhelming debts, allowing for a new start, but with certain restrictions.
- Your assets will be shared out equally amongst your creditors.
- Filing for bankruptcy will cost approximately £500 in court and administration fees.
Administration Order
- An Administration Order is taken out for credit debts and specific other debts, and generally up to £5000.
- A payment is made each month into the court, with court administrators sharing the amount amongst your creditors on your behalf.
- It prevents creditors from pursuing further action against you.
Debt Budgeting Calculators
- A debt budgeting calculator will assist you in evaluating how much money you can make available each month.
- It can greatly assist in your choice of debt solution.
When Can I Call?
- You can call the debt helpline any time; 24 hours a day, 7 days a week, 365 days a year.
How Can I Get Help with Debt Solutions?
- Call us free on 0800 0789 544
- Email: info@e-insolvency.co.uk
