Getting Out of Debt
Debt Solutions To Be Debt Free
Debt can be a problem for all kinds of people and knowing which method for getting out of debt is difficult without guidance and advice.
Should I Continue to Ignore My Debt Problems?
- Never ignore your debt problems, as they will only become worse.
- The sooner you seek debt recovery help, the sooner you’ll become debt free.
What Methods are Available for Getting Out of Debt?
There are a range of methods available to help people to get out of debt.
- A good first step is to use a debt budgeting calculator to establish how much money you can set aside to cover your debts every month.
- A debt management plan is most often the best option, as there are no legally binding agreements involved. Best for smaller debts, a debt management plan can be negotiated with creditor(s) (often with the help of a third party) to set a schedule for repayment.
- Individual Voluntary Arrangements (IVAs) are a more secure way of clearing debts over £15,000, require payments of at least £200 per month and are usually set with a repayment period of five years. If your debts are also from at least three different creditors and you have a regular income, it may be the best choice for you.
- Trust deeds are legally governed procedures and can benefit residents of Scotland, with repayments usually set out over three years. Once the repayment period is complete, the remaining debt is written off.
- Debt consolidation loans are available through a secured or unsecured loan and shouldn’t be considered if you don’t have a regular monthly income.
- Bankruptcy is often a last option for people trying to get out of debt. Your assets will be distributed amongst your creditors, and you will have certain restrictions, but also free of overwhelming debts. A £500 administration fee will have to be paid and bankruptcy shouldn’t be sought without seeking expert advice.
Be Cautious of Bad Debt Advice Companies
- Many debt advice companies employ salesmen rather than specially trained debt advisers, resulting in people agreeing to a more expensive, rather than the most suitable, debt recovery programme.
Who Can I Call for Advice?
- You can call the debt helpline any time; 24 hours a day, 7 days a week, 365 days a year.
How Can I Contact a Debt Helpline?
- Call us free on 0800 0789 544
- Email: info@e-insolvency.co.uk
