Below you will find some of the solutions that broadly speaking would be suitable
for someone who has unsecured credit commitments under £15,000
Although this is a good guide for the moment, you will always benefit more from talking
with a specialist debt adviser, so if you want to talk more and in more detail after
reading the information then please feel free to contact us
DMP (Debt Management Plan):
A DMP can be a great way to get your finances back on track. If you are struggling
with your current repayments and finding that your interest and charges are getting
out of control you may find that a DMP would be able to get your monthly payments
down to a more manageable amount and your debt management provider may be able to
stop interest and charges and negotiate with your creditors directly to keep them
from contacting you.
· One reduced monthly payment based on what you can afford.
· Negotiations happen with your creditors to try and stop your interest and charges.
· Allows you the flexibility to deal with your creditors in a way that suits you.
· Removes the hassle of dealing directly with your creditors.
· An option that will allow you to become debt free.
Although a DMP can be a big help we find that for people struggling with the higher
debt levels often above £15,000, an IVA is better suited as it is a binding agreement
that can force your creditors to accept reduced payments and it could bring a swifter
and more permanent solution to your debts without having a longer timescale to become
Re-Mortgage / Loan Consolidation:
If you are struggling with re-payments to your unsecured debts e.g. credit cards
and loans, then a re-mortgage or secured loan could allow you to free up some cash
to pay off some or all of these debts and reduce your monthly outgoings.
However, you must always think very carefully about securing further debts on your
home. If you are unable to pay back those debts then your home could be repossessed.
Furthermore you would need equity in your property to be able to consolidate in this
way and in many cases there are alternative ways to tackle your debts without borrowing
Consolidating your debts with further borrowing can be a precarious route. To take
out further loans in order to pay off your existing debts, may reduce your monthly
outgoings. However, it could increase the time you spend in debt and could increase
the total amount that you would pay back.
In most cases if you are already struggling with your repayments and have been declined
loans in the past, then loan consolidation may do more harm than good and not even
There are other routes that a Specialist Debt Adviser can discuss with you and whether
you choose to take our advice or not you will at least be better informed and it
has cost you nothing.
Bankruptcy should always be seen as a last resort. It can be a very public and sometimes
humiliating experience with some very damaging and long lasting affects. In many
cases you can avoid bankruptcy with the right advice and the correct solution.
· Bankruptcy is the last resort for anyone struggling with debt.
· Bankruptcy is for people who cannot afford to pay anything towards their debts.
· If you are able to make payments towards your debt then you may be forced to do
so for up to three years.
· Your creditors can force the sale of your assets in order to recoup the money owed
· In some professions you may run the risk of loosing your job.
· All of your accounts will be closed and anything held on HP will be returned to
· Your name can be published in your local newspaper and the London Gazette.
· Your landlord may be notified.
Specialist Debt Advice
Often people think that bankruptcy is their only option. However there are alternative
options available that can help you to become debt free without going through the
trauma of bankruptcy