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If your financial situation has taken a turn for the worse or seems to be a constant downward spiral, you may be looking for debt solutions to help you get out of the red. Maybe you've maxed out your credit cards and cannot repay the amounts, or are struggling to make ends meet after taking out a personal loan. Whatever your circumstances, you can rest assured there will be an option available to help you become solvent again. You may have started to think about taking out an individual voluntary arrangement (IVA) to help you out of a financial mess, but there may be other more suitable options for you to consider. IVAs are arrangements with your creditors to pay back affordable amounts within a certain timeframe - often five years. During this period, interest payments are frozen and considerable amounts of debt can be written off - sometimes up to 75 per cent. Your financial situation is not made public and creditors usually accept this form of debt repayment as it means they still receive some of the money back you have borrowed. However, you might first like to think about choosing a debt management plan, which is not quite as extreme as an IVA. A third party will work to manage what you owe under this type of debt solution, working out how much you can afford to pay back on a weekly or monthly basis and negotiating the amount with your creditors. If you live in Scotland you have a further choice - a trust deed. This is a legal agreement made with a licensed insolvency practitioner who makes a proposal to your creditors with regards to how you will repay your debts over a set timeframe. A final option you might like to consider is bankruptcy. This is often seen as a last resort because your financial situation is made public and your ability to get credit in the future may be affected. Despite this, it can be the ideal solution if you cannot pay your debts when they are due. Under the arrangement, a trustee will use your assets to repay the money you owe after scrutinising your circumstances. If you own your home it will be used to pay off your debts but you will be left with enough cash every month to cover your basic expenses.
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Debt solutions, IVAs,
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