How to Handle Your Debt Problems

Debt Solver is a member of DRF (Debt Resolution Forum). The Debt Resolution Forum promotes professional standards for resolving debtors' financial problems, focussed on the quality of advice provided to consumer debtors by all DRF members.

"Mike owed £15,040... He's now paying £255 a month instead of £500."
Mike

"Neil owed £30,526... He's now paying £255 a month instead of £908."
Neil

"Jessica owed £38,510.86... She's now paying £492 a month instead of £1272."
Jessica

Handling Debt Problems

When debts become overwhelming, there just doesn't seem to be an easy answer. Many people ignore the problem completely. For some people, the first thing that comes to mind is bankruptcy, but there are often other, less drastic solutions to debt problems. There are usually options other than bankruptcy that a debtor should consider as a possible solution to their debt issues before resorting to something as detrimental as bankruptcy.

Aside from bankruptcy, what other options does a person have when they can no longer pay their repayments without a struggle? Depending on the circumstances, you may want to consider debt consolidation if you have enough equity in your home. In debt consolidation your unsecured loans are consolidated into a single secured or unsecured loan. The interest rate and repayment schedule should leave you with a larger amount of money free to spend each month. Your home is at risk if you don't keep up with the loan repayments though. Also it's important to understand that this doesn't work for everyone, and you should not use it if you are consolidating high interest credit cards in order to be able to use them again.

Another possibility is debt management where you enlist the assistance of a debt management company who will assist you in working out a program for repayment, possibly lowering and perhaps even freezing interest, thus allowing you to repay your borrowings within a foreseeable period. The debt management company will sit down with you and work out a plan that will allow you to pay something on all of your debts. In addition, the debt management counselor will contacting your creditors to set up the agreement for payments, and they will make all of the payments for you.

If a debt management plan or a consolidation loan is not suitable for you, another alternative to bankruptcy is an Individual Voluntary Arrangement (IVA). A Licensed Insolvency Practitioner will review your financial circumstances and assist you in proposing a repayment plan to your creditors based on a realistic, affordable monthly payment, usually over a period of 60 months. At the end of the IVA, your creditors will write off the balance of the debt. An IVA will affect your credit rating and will appear on your credit file for a period of six years from the date of its acceptance. An IVA is less restrictive than bankruptcy and allows you to remain in control of your assets.

Whatever your debt situation, there's very often no "one fits all" solution. Everyone's circumstances are unique. Therefore it's important to call for expert debt advice. For free, confidential, professional debt advice ring 08000 434 336.

Request a call back from one of our consultants

First name

Last name

Home phone number

Mobile number

Postcode

Email address

Total unsecured debt

Are you a home owner?
yes No

Equity amount

When should we call you:

I accept the Privacy Policy

7 Card Tricks to Deal with your Debt
yourself of bad debt isn t going to happen by magic There s no quick fix ...

Financial Fallout – See the Signs
are the ten early warning signs that point to impending debt disaster Be sure to look ...

The Five-Step Plan to Clear Debts
this five-step plan from the dedicated financial advisors at Debtsolver and make the year you free ...

Lack of debt help ‘forced’ Dannii Minogue to strip for Playboy
Minogue has recently revealed that the pressure of her severe debt problems forced her into posing ...

Remortgage and Save!
vast majority of households in Britain will find that their single highest expenditure is their mortgage ...