Understanding Debt Management Services and Their Working
Debt management services are designed to help people with multiple debts manage them efficiently and effectively.
John Doe
Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry’s.
John Doe
Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry’s.
IVA’s could write off up to 81% of debts and save you £1000’s
If you have unsecured debts over £6000, an IVA is a formal debt solution that people can use if they are struggling with unsecured debts and want to avoid being declared bankrupt by the people they owe money to (known as creditors).
An Insolvency Practitioner (IP) will be appointed to your case, they will draft up a repayment proposal which outlines your financial situation.
During the period of an IVA you will make bitesize repayments over the course of around 60 months and at the end of the term any payments that are still owed are written off.
Do you live in Scotland and are struggling with debt? A Trust Deed could be for you.
Similar to an IVA, a Trust Deed is a debt solution for Scottish residents that will have you make affordable monthly repayments over a four year period to write off some of your outstanding debt.
A Trust Deed is set up by an Insolvency Practitioner (IP), it will dilute your monthly payments so that you can pay the back in a more bitesize manner over the course of 4 years. After this period, any remaining unsecured debt can be written off. A Trust Deed is similar to an IVA but they are not identical.
Streamline debt repayments with a Debt Management Plan
A Debt Management Plan (DMP) is an informal agreement between you and the people you owe money to (creditors).
A Debt Management Plan will state that you will pay back the money over an agreed period of time. Your monthly payback rate will depend on how much you can afford.
What makes a Debt Management Plan different to a lot of the other debt solutions is the fact they are not legally binding. This means that although your creditors might firstly agree to your terms; they can go against the agreement at any point.
Bankruptcy could make you debt free in 12 months
Bankruptcy can be a path to clearing debts, it is a legal way to declare your inability to pay your creditors. If you have debts you cannot repay, Bankruptcy could be a viable solution for you.
Within bankruptcy you will stop paying your creditors and creditors can no longer chase you for outstanding payments. For people going into bankruptcy it can provide a fresh start for debt that could not be repaid. Bankruptcy can be done voluntarily or can be actioned by the creditors you owe money to.