Alternatives to Debts Management

If you are looking for a way to reduce your outgoings to creditors but you feel as though a Debt Management Plan is not the solution for you, don't worry as there are other alternatives. 

To help you understand the options available to you in more detail, simply take the Debts Test or call us on 0808 131 9112.

Debts Management Alternatives:

IVA - Individual Voluntary Arrangement 

An IVA is a legally binding agreement between you and your creditors. You pay a fixed monthly amount to your debt over an average of 60 months. All interest and charges on your debts becomes frozen and anything you cannot afford to repay is automatically written off at the end of the agreement. 

If you are a Scottish resident then a Trust Deed is your alternative to an IVA. 

Consolidate Debts with a Secured Loan 

Debt Consolidation means that you swap numerous high-interest debts, including loans and credit cards with one lower-interest loan. This means that you are only making only monthly payment which allows you more control over your outgoings.

A Secured Debts Consolidation loan is moist suited to those with more equity in their home than the amount of unsecured debts. If you think you might struggle to make these payments then a secured loan is not for you, as failure to make your payments could lead to you losing your home.

Bankruptcy

Deciding to declare yourself bankrupt is a decision that you should not take lightly. This should be seen as a last resort as it has serious and lasting implications for your future. Only take professional advice from a Licensed Insolvency Practitioner.

  



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Entering into an IVA may adversely affect your credit rating for up to six years from the date of approval.

Your property will be protected within an IVA but you may be required to release all or part of any equity during the period of the arrangement.

Failure to complete the term of an IVA can result in bankruptcy.

(In Scotland, a PTD is the equivalent to an IVA.)
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