In the current climate, many people need help with debts, but what help is available to people struggling with their finances? Some of the more familiar debt solutions include consolidation loans and re-financing options, but with virtually all lenders tightening their lending criteria, securing finance is increasingly more difficult. Here are some of the other available options that can help with debts.
Other options to help with debt
Debt Management Plans
This is a flexible solution that gathers all of your unsecured balances together and makes repayment of balances more manageable by spreading them over a longer period. By negotiating with your creditors, to try and reduce or freeze the interest and charges on your accounts, we help you to reduce your monthly payments and eventually clear your debts. Click here to learn more about how a debt management plan could provide help with debts and improve your financial situation.
Individual Voluntary Arrangement (IVA)
IVAs work in a similar way to debt management, by gathering all unsecured balances into one single monthly payment. IVAs are repaid over a fixed period, which is usually five years. After this, all unsecured balances are effectively written off and you become debt free. This is a more formal arrangement that involves a qualified insolvency practitioner to ensure your creditors cannot change their minds once the IVA has been agreed. For IVA advice or to learn more about IVAs, click here.
Trust Deeds
A Trust Deed works in a similar way to an IVA, but is for people living in Scotland. Like with an IVA, Trust Deeds are also repaid over a fixed period, but generally shorter – three years. After this, all unsecured balances are written off. For more information on Trust Deeds and our other debt solutions, click here.
Challenging Unfair Credit Agreements
Many companies have been advertising recently about challenging credit agreements, as they claim that if contracts don’t have your name or date on them they may not be enforceable. The Claims Management Regulator at the Ministry of Justice (MOJ) and the Office of Fair Trading (OFT) have warned consumers to think carefully before responding to these businesses claiming they can arrange for outstanding balances to be written-off and secure compensation.
Consumers are advised to seek independent debt advice before using the services of businesses that offer to find ways to render consumer credit agreements unenforceable. Businesses can only provide these type of claims services if they are authorised and regulated by the MOJ under the Compensation Act 2006. Such businesses may also need to hold an appropriate OFT consumer credit licence.
Many charge a fee of around £500 just to glance over your contract to “check it”. Much has been made in the press about the regulation of this industry, with experts warning not to trust a company that promises something that sounds too good to be true.
Get help with debt now
Reputable companies will go through your financial situation and identify which options are available, before making recommendations as to which would be the most suitable for your particular circumstances. From there you will be able to make an informed decision on your finances.
For a FREE no-obligation review of your debts, from a reputable and well-established company, just call the number at the top of the page or click on one of the links below.
