Debt Advice

If you live in England, Wales or Northern Ireland and are experiencing debt problems then Debt Advice Resource is the perfect place to start to gather information about debt solutions for you

Start by asking yourself how much unsecured debt you have, is it above or below £10,000? Can you afford to pay anything back to your creditors each month? Do you own any assets like a house or car? These all have to be taken into account when you think about your debt solution.

Debt Management Plan: An informal debt solution for people who can’t afford to meet the contractual repayments each month. A debt management plan will attempt to freeze your interest and charges, enabling you to become debt free quicker by paying back the debt. Read more about debt management plans.

Individual Voluntary Arrangement (IVA): An IVA is a debt solution which enables you to put a proposal towards your creditors offering a percentage of the money you owe them back, typically over 5 years. At the end of the debt programme any remaining debt will be written off. Read more about IVAs.

Bankruptcy: When you are unable to meet your contractual payments and are struggling to make ends meet you may consider bankruptcy as your best option.  Read more about bankruptcy.

If you are unemployed or on benefits you should seek help from your local Citizens Advice Bureau or a telephone based debt advice charity. At this stage a qualified debt advisor can determine if negotiating with your creditors is the best option or whether it would be better to enter a bankruptcy solution.

There are rules and regulations about bankruptcy which a qualified debt advisor can explain to you.

There are a number of debt solutions for people living in England, Wales and Northern Ireland. What matters is your income, expenditure, how much you can pay towards your debt each month and whether or not you have assets. People often think going bankrupt is simple and you don’t have to pay anything, but you do.

You may be applicable for several debt solutions, which probably feels like it’s not helpful at all, however if you know the positives and negatives of these solutions then you’re able to make an informed decision and the path you take.

For instance, did you know that in an IVA you only repay what you can afford but in a debt management you repay everything? However, an IVA is an insolvency solution, where as a debt management plan is an informal agreement you make with your creditors which you can cancel at any stage.

Please remember, when you are ready to speak to somebody about your debt you must get in contact with a registered debt advice charity.  Debt Support Trust is a registered debt advice charity helping people with debt problems. Telephone Debt Support Trust on 0800 085 0226.

For face to face debt advice contact your local Citizens Advice Bureau who can make an appointment to meet with you.

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John The Bankruptcy Guy

As an ex-bankrupt, John has experienced the highs and lows of credit. It's with this knowledge that he writes Debt Advice Resource - to help others avoid, or navigate out of, the pitfalls of debt.

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