subject: Free Help And Advice For Debt Problems [print this page] There are a number of sources for free help with debt and debt advice in the UK. The average personal debt in the UK is now thought to be around 10,000 pounds. Whilst there are many who are in control of their personal debt there are many other who hide their debt, in some cases this can make their debt problems worse.
Seeking free debt help and advice can help you clear your person debt without you having to cut down on the things you and your family needs. If you are struggling with credit card debt or are unable to keep up with your personal loan repayments you may want to explore these debt management options.
Free debt advice
In some cases you will be able to reduce your debt and eventually become debt free by taking free debt advice from a professional. These individuals can provide sensible, easy to follow advice for decreasing your outgoing finances and prioritising your repayments.
Debt management plans
A Debt management plan is an arrangement that you can make with your debtors to make regular reduced debt payments based on how much money you can afford to pay. This debt help can be perfect for individuals that cannot afford high payments over a short period, but can comfortably afford to repay the debt over a longer period of time.
Some debtors will even agree to reduce or freeze the interest on your debt which will stop the debt from growing over time as you make smaller payments. If the debtor refuses to do this you debt may well grow further and you will end up paying more as you will be paying interest for longer,
Debt consolidation loans
A debt consolidation loan is a loan large enough to pay off all of your existing debts in order to make your debt problem easier to manage. You then pay all of your repayments to the one debtor. Debt consolidation loans may reduce your monthly repayments as you will be paying the loan back over a longer period but again if the interest rates are high on the loan you may end up paying much more in the long run.
IVA
A last resort as a debt management option but preferable over bankruptcy. An IVA is a formal arrangement with your debtors to repay a portion of the debts that you owe and to write the rest of the loan off.
You will often be required to repay the agreed balance of loan over a certain period, often five years. Once you have completed this repayment you are legally debt-free.
Though you do not risk losing an assets or property by agreeing to an IVA as you would if you declared yourself bankrupt you will still damage your credit rating which will make it harder to borrow money in the future.
by: Bill Weston
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