Four Ways To Debt Relief
Let's face it; it's so easy to get into debt these days.
A change in circumstances or a bad decision is all it takes.
Thankfully there are options available that can sort out your debt worries and stop the threatening letters and phone calls and you won't have to worry about the bailiffs visiting.
The purpose of this article is to help you make an informed decision about your options.
There are basically four different options available.
We'll give you a brief overview so you can take the first step in understanding your debt problems and sorting out a solution.
Unsecured Loans For some people who have a relatively small amount of debt and a good credit record, an unsecured loan may be a good option.
However if you've had debt problems, another loan on top may not be much good and could even make things worse.
Also if you've had problems with your credit record such as defaults or CCJs then unfortunately an unsecured loan may not even be an option for you.
Debt Management Plan A Debt Management plan is a good option if you have a lower amount of debt and don't want any more.
A Debt Advisor will talk to your creditors on your behalf and hopefully be able to sort out a repayment plan.
You will pay a single monthly payment into your Debt Management Plan and your Debt Advisor will distribute this amongst your creditors.
All those threatening letters and phone calls will stop and you'll be free to get your life back on track.
Your Debt Advisor may even be able to get all your interest and charges halted giving you a realistic chance of getting your debts cleared quickly.
You also get the added bonus of added peace of mind that comes from not having to deal with threatening letters and phone calls.
Secured Loans A secured loan is a good option if you're a homeowner.
You're more likely to get your loan request approved because it's secured against your home, even if you do have some adverse credit history.
If you're not a homeowner, we're sorry but you can't get a secured loan.
A secured loan really does give you the opportunity to get all your borrowings in one place and get them paid off.
Interest rates on secured loans are likely to be lower than their unsecured siblings as well.
All giving you a realistic chance to get your debts cleared.
However you must consider that the loan is secured against your home and if you fail to keep up with repayments, you stand a realistic chance of losing your home.
IVA An IVA or Individual Voluntary Agreement is a legally binding agreement between you and your creditors (people you owe money to) set up and administrated by a licensed Insolvency Practitioner (IP).
All those threatening letters and calls will stop because your creditors are legally obliged to obey an IVA giving you the peace of mind that you've been craving.
You will make one payment each month and your IP will give it out amongst your creditors.
You will never be asked to pay more than you can realistically afford and after just 5 years, all debts that remain outstanding are written off and you are considered to be debt free, allowing you to start to rebuild your credit record.
A change in circumstances or a bad decision is all it takes.
Thankfully there are options available that can sort out your debt worries and stop the threatening letters and phone calls and you won't have to worry about the bailiffs visiting.
The purpose of this article is to help you make an informed decision about your options.
There are basically four different options available.
We'll give you a brief overview so you can take the first step in understanding your debt problems and sorting out a solution.
Unsecured Loans For some people who have a relatively small amount of debt and a good credit record, an unsecured loan may be a good option.
However if you've had debt problems, another loan on top may not be much good and could even make things worse.
Also if you've had problems with your credit record such as defaults or CCJs then unfortunately an unsecured loan may not even be an option for you.
Debt Management Plan A Debt Management plan is a good option if you have a lower amount of debt and don't want any more.
A Debt Advisor will talk to your creditors on your behalf and hopefully be able to sort out a repayment plan.
You will pay a single monthly payment into your Debt Management Plan and your Debt Advisor will distribute this amongst your creditors.
All those threatening letters and phone calls will stop and you'll be free to get your life back on track.
Your Debt Advisor may even be able to get all your interest and charges halted giving you a realistic chance of getting your debts cleared quickly.
You also get the added bonus of added peace of mind that comes from not having to deal with threatening letters and phone calls.
Secured Loans A secured loan is a good option if you're a homeowner.
You're more likely to get your loan request approved because it's secured against your home, even if you do have some adverse credit history.
If you're not a homeowner, we're sorry but you can't get a secured loan.
A secured loan really does give you the opportunity to get all your borrowings in one place and get them paid off.
Interest rates on secured loans are likely to be lower than their unsecured siblings as well.
All giving you a realistic chance to get your debts cleared.
However you must consider that the loan is secured against your home and if you fail to keep up with repayments, you stand a realistic chance of losing your home.
IVA An IVA or Individual Voluntary Agreement is a legally binding agreement between you and your creditors (people you owe money to) set up and administrated by a licensed Insolvency Practitioner (IP).
All those threatening letters and calls will stop because your creditors are legally obliged to obey an IVA giving you the peace of mind that you've been craving.
You will make one payment each month and your IP will give it out amongst your creditors.
You will never be asked to pay more than you can realistically afford and after just 5 years, all debts that remain outstanding are written off and you are considered to be debt free, allowing you to start to rebuild your credit record.
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