Getting into debt is a lot easier than getting out of debt. Fortunately, there are a number of debt solutions that have been designed to help consumers become debt free quicker and more conveniently. Bankruptcy is a last resort and should only be considered when all other options have been exhausted but this still leaves IVAs, debt consolidation, and debt management programs. Dealing with a debt management company means that you will be able to determine the most effective and efficient alternative for you.
Debt consolidation programs aim to combine all of your debts into one monthly debt and you will be expected to make one monthly repayment. This repayment will be spread across your creditors and it can protect you from the constant calls and letters that you may be receiving from your creditors. You will still need to pay interest rates but it doesn’t affect your future potential to borrow money.
A debt management program offers some similar benefits if it turns out to be the best of the debt solutions for your requirements. It does avoid the need to file for bankruptcy and it does reschedule debt repayments. However, this method does not prevent interest rates from building up and it may affect your credit rating which could make it more difficult to borrow money in the future.
An IVA is one of the more robust debt solutions and may prove to be the vest choice if you are in serious financial debt but do not wish to file bankruptcy. It may be necessary to sell your home for equity, or at least to remortgage your property, and it will typically affect your credit rating and, therefore, your ability to borrow money in the future. However, it will stop calls and letters from your creditors.
Bankruptcy is the final resort and should be the last of the debt solutions that you consider, when you have no other choice. The courts will take control of your assets, including your house and car, and these may be sold in order to finance repayment of your debts. Your records are made public and you should seek advice before taking this or any other form of debt solutions.
Contact DebtAdviceUnit.co.uk for more information on IVAs, bankruptcy, and other debt solutions. We can help you become debt free sooner and to become financially stable once again.