A look at other debt solutions other than IVA's and see how they work and possible restrictions.

Debt Management, or a debt management agreement involves a company (like deletedebt) agreeing with your current creditors a plan for your debt and the repayment of that debt, with the main aim being a reduction in your repayments. A fee is normally requested by the debt management company for this service.

There are a few potential negative aspects with debt management agreements: -

• You are not full protected from your creditors; they retain the right to demand full payment of the debt and interest at any time.
• You still have to pay off all your debts, this could lead to a longer repayment period and with the interest you will be paying, could mean you end up paying more.
• As a debt management agreement is informal, it could be difficult to get all your creditors to agree to writing off all or some of your debt.

Bearing these points in mind, people do still use debt management agreements and with great effect, making themselves debt free and keeping control of current debt. Delete Debt will identify if this solution is best for you once we have looked into your current financial situation – we won’t charge you fees and your creditors will cover the costs of setting up the plan – Get a call back now from one of our debt management consultants and get debt free.

Another possible route to being debt free could be releasing equity in you property, you could also consolidate debts, credit cards, HP or loans, with a consolidation loan or refinancing, this means a larger loan with a lower interest rate, over a longer period.

If you have sufficient equity in your property, a secured loan or remortgage is recommend when the debt is only small, this released equity can then pay off the incurred debt. It is possible if you remortgage that you will save yourself money as your monthly mortgage payment could be lower if you shop around.

We normally advise people against consolidation if you unsecured are more than £15,000, as the greater financial burden could make your worse, especially if the loan is secured on your home. At this stage an IVA would possible be the best choice.

Speak to one of our advisers and they will give you free debt advice, giving you all the options available to you and your situation and find one that fits you best. We will find the best debt solution for you, searching the market at no cost for a loan that meets your needs.
Get a call back today from one of our advisors

This is the last resort in debt management and is only used in serious cases of debt, but can be bought on by a creditor that is owed only more than £750, but you can also enter into this yourself. Generally bankruptcy involves all assets you own being sold (car, house, etc) and the earnings going to your creditors for part of whole payment of your debt. In some situations exemptions on what is sold are enforced mean that you could possible keep your home.

The aim with all debt management solutions is to get you debt free, filling for bankruptcy will certainly do this, what happens is that your current debt and financial affairs are frozen, all assets are valued and you pay off as much of the debt as possible. You are essentially drawing a line under your current situation and starting again – debt free.

As with any debt solution there are a few restrictions that you should be aware of, your situation will be advertised in local papers, all bank accounts and credit cards will be closed, you could also lose your job if you work in certain industries or professions, plus you are not allowed to a business or hold public office during the bankruptcy.

A bankruptcy term usually last for 12 months, after this time you will be debt free and no further action can be made by your creditors, but you still may have to make payments for 3 years.

As with all our clients, we will give you a fair assessment of your current situation, allow you to choose what option is best for you, bankruptcy is really the last resort. There might be a better solutions for you, we also offer IVA debt advice, this could be your best option if you owe more than £15,000 and have regular employment – get a call back from one of our agents today - get debt free.