Sometimes when researching your debt management solutions, the most tricky things to come to terms with is the terminology and what this means to you. This page outlines to typical debt terms that you may come across when looking to manage debt but for personalised debt advice you need to speak to the experts. Get in touch with DebtsManagement.co.uk by filling out the Quick Enquiry Form.

Debt Consolidation: This means that you consolidate debt into one low monthly payment to make it easier to keep track of your finances. Debt consolidation typically happens in the form of a debt consolidation loan where to take out a new loan to pay off all of your existing debt.
However, you may not wish to take on more debt in order to pay off debt which is already unaffordable. If this is the case you may be thinking about debts management.

Debts Management: One of the most popular debt solutions which allows you to make your debts more affordable on a monthly basis without the need to take out any further credit. A debts management company, such as ourselves, will work with your creditors to negotiate lower monthly repayments to your debt that you can realistically afford after all living expenses have been taken into account. We may be able to get your interest and charges frozen but this cannot be guaranteed. Instead of worrying about multiple debt repayments made at multiple times of the month, you just make one payment to us which we will distribute between your creditors as agreed.

Individual Voluntary Arrangement (IVA): One of the more unusual debt terms which you may come across is an IVA. This is similar to a debt management plan as it allows you to reduce your payments into one but it offers you additional advantages which you cannot get with debt management. For example, an IVA is a legally binding contract which, once agreed, means your creditors cannot change their mind. You agree to repay a fixed amount over a typical period of 60 months, your creditors freeze interest and charges and any unpaid debt will be written off on completion of the IVA.

This gives you just an overview of the debt solutions available. For further explanation about the different debt terms available, contact DebtsManagement.co.uk directly.