Debt Solutions

Debtors in the UK have a range of debt solutions available to help them decrease or eliminate debt. Which option is the most suitable depends on the size of debt, their employment status, the number of creditors and location (some options are not available in Scotland).

Debt solutions at a glance:

1. Consolidation loans

For those with smaller debts. You can consolidate your payments spread over loans, credit cards and overdue bills into one lower monthly payment.

2. Debt Management

You can let a debt management company be in control of your debt and negotiate lower monthly payments with your creditors.

3. IVA (Individual Voluntary Arrangement)

For those with debts over £15,000. You are declared debt free after 5 years of monthly repayments negotiated with your creditors even if the repaid sum is lower than your original debt.

4. Bankruptcy

This is the last resort. Bankruptcy income contributions usually last 3 years, but you will most likely have to give up all your assets in order to pay your creditors, like house, car or even jewellery.

If you are struggling with your monthly repayments, do not hesitate and seek professional debt advice to get back in control of your finances and your life.