If you are struggling with the monthly repayments on your credit cards, personal loans, store cards and other bills then you may be in serious financial difficulty. There are several options available to you including IVA’s (Individual Voluntary Arrangements), Trust Deeds and Debt Management. UK consumers need no longer feel crushed by their debts when there is specialist help available.
Consolidation Loans
In the past, we have been encouraged/taught/learned that when our finances start becoming difficult, or too expensive to manage, we take out a consolidation loan to gather them all together with a more manageable repayment.
But, as is often the case*, we then start spending again on the credit cards, overdrafts and store cards that we have just cleared – ending up in the same position (or worse) than we were before. This is almost acceptable if you have a constant wage to balance your finances and keep paying debts off, but what happens if you lose your job, or your income drops?
The combination of the credit crunch and a global economic downturn has meant that many people can no longer get a loan from their bank or building society.
Soaring unemployment levels have also meant that those people who do have loans, store cards, catalogues, credit cards and everything else can often no longer repay them – or they are finding that keeping on top of all of their balances is proving increasingly difficult.
Proffessional Debt Management. UK specialists
Specialist Debt advice companies can offer a number of ways to get out of debt, which provide instant relief to the stresses associated with financial troubles. These include offering free advice and help on budgeting properly, but can also include a number of other solutions, such as an IVA (Individual Voluntary Arrangement), a Trust Deed (available only in Scotland) or Debt Management. UK companies that are highly regarded, as specialists in this field, include The Debt People, Chiltern and Hamilton Locke. These companies offer free advice and are able to provide specialist IVA help and support.
Debt Management
Consumers can benefit from having all of their unsecured balances gathered into one single payment, without having to borrow more money. Taking into account all income and outgoings, the company can ensure that the repayment is affordable. All of the unsecured arrangements are then negotiated with creditors, in order to reduce the monthly payments, and to reduce or stop the interest and charges on the accounts.
This kind of solution enables people, who are struggling with their finances, to regain control whilst still managing to pay towards their outstanding balances.
IVA
An IVA is fairly similar, but is repaid over a set period of time (normally five years). For an IVA to be agreed, it needs a qualified Insolvency Practitioner to draft a legal agreement between you and your creditors – to protect you from them changing their demands. Following the Insolvency Practitioner’s initial advice, they will also offer guidance, and ongoing help, throughout the full term.
For more information on debt management UK, or to speak to one of our helpful and friendly advisers, please call the number at the top of this page.
* two-thirds of people who consolidated their balances with a debt consolidation loan, then went on to develop further debts.
