When you’re in debt it can feel like you’re trapped and there’s is no way out but that’s simply not true any more.
No matter how much you owe, who you owe it to or how little you can afford to pay to the debt, there’s always a debt solution. There is also financial advice like mortgage help,
Some debt advice organisations will provide a face to face service, while other will be over the telephone or internet debt advice.
Any debt advice organisation which charges just for their advice should be avoided because there is no need to pay just for advice.
It’ vital to get debt advice before entering any debt solution because some have serious consequences.
An informal debt solution between a debtor and creditor to repay the debt over a set period of time.
Debt management organisations can help debtors setup and manage a debt management plan, some for free but most will charge a fee.
Debt Arrangement Scheme (Scotland only)
Similar to a debt management plan but it is a formal agreement which needs to be setup by qualified money advisor.
While the full debt will be repaid, all interest and charges must be frozen once the solution begins.
IVA (Exc Scotland)
An IVA debt solution lets debtors repay a percentage of their debt over 5 years by paying a monthly contribution.
Any debt still remaining at the end of the IVA period will be written off and the solution completed.
Protected Trust Deed (Scotland Only)
A monthly contribution is made towards the debts each month for 4 years and any remaining debt is written off.
it’s an insolvency debt solution which will impact on every’s credit rating for up to 6 years.
Bankruptcy (Exc Scotland)
In bankruptcy some people will have to make a monthly contribution if the official receiver feels it’s affordable.
Sequestration (Scotland Only)
The same as bankruptcy in the rest of the UK except there are different routes to entering sequestration.