The right debt solution is not always the same for every person struggling with their debts. It’s for this reason that seeking professional debt advice is important. The correct solution will depend on your personal and financial situation. Debt Support Trust offers tailored debt advice which is specific to your financial and personal position.
Entering the wrong debt solution could lead to assets being sold, which you would have wanted to retain or repaying debt over a longer than necessary period. Many people may even be suitable for two or three different debt solutions too, so it’s vital to know the process and pros and cons of these debt options to make an informed decision.
Debt Support Trust is a registered money advice charity and is available on 0800 085 0226 to provide you with debt advice for you.
IVA Debt Advice
One debt solution that is available for thousands of people in debt is the IVA. It’s important to understand the debt solution and get IVA debt advice before entering the plan. The IVA enables a person to repay what they can afford to their debt over a set period of time, usually 5 years. Each month you pay what you can reasonably afford towards your debt. Any debt which is not repaid at the end of the IVA debt solution will be written off.
There are other debt solutions which you may be applicable for, including the debt management plan, token payments, refinancing or bankruptcy. Some people may also be able to turn to friends and family to help clear outstanding debts.
If you would like to understand which debt solutions you are applicable for, then take our 10 minute debt test. It will ask you for information about your income, expenditure, assets and debts to determine which debt solutions would best meet your needs.
Our website, IVA Debt Advice, is managed by debt charity Debt Support Trust to provide specific help and advice on the Individual Voluntary Arrangement debt solution. You can also get specific advice on your financial situation by telephoning 0800 085 0226 and speaking to a helpful advisor.
The variety of debt solutions available will vary depending on your situation, so an IVA may not be appropriate for you. As a result we have listed and outlined other debt solutions too. These debt solutions include:
An informal arrangement with creditors, managed by a debt management company, to pay a fixed amount towards the debt each month. Interest and charges will be requested to be frozen and all of the debt will be repaid. There is no guarantee that the interest and charges will be frozen, or if they are, that they will remain frozen for the entire period of the debt management plan.
Be aware, some debt management companies take fees of up to 40% of your monthly payment and a setup fee of 2-3 times your monthly repayment. Get help and advice to avoid paying these debt management fees.
An Individual Voluntary Arrangement is a fixed period debt solution which protects you from your creditors. You pay one monthly payment, for no more than 5-6 years, after which any remaining debt is written off. The IVA debt solution will protect your house but any large amounts of equity may have to be realised at the end of the solution.
If you think you’re suitable for an IVA give Debt Support Trust a call on 0800 085 0226 to get specific debt advice on IVAs.
The bankruptcy debt solution allows a person to resolve their unsecured debt problems via a number of different bankruptcy solutions.
The cost for bankruptcy can range from £0 to £700 from creditors petitioning for your bankruptcy through to your own court bankruptcy petition. Get debt help on bankruptcy from Debt Support Trust on 0800 085 0226.