Debt Solutions - What Options Are There For You?
If you are one of the many people who are finding it hard to manage financially in the current economic climate then you may be wondering what debt solutions you have got available.
Some of the options that are out there may not be appealing to you or may not be needed so it important to try to understand a little bit about them.
We have given a brief outline of some of the main ways that you can choose to start your financial recovery with.
Declaring Yourself Bankrupt.
For those people who are in the most serious financial trouble, this can sometimes be the only viable option.
Filing for bankruptcy will result in your debts being cleared but you will also be tarred with its brush for a good few years after it as well.
Choosing this option could also have an impact on you career depending on the position you hold and you will definitely find it difficult to get any type of credit.
IVA Agreement.
If you choose to go for an Individual Voluntary Arrangement then you will not be faced with the same situation as bankruptcy as the agreement is not made public knowledge.
Your personal financial situation will be assessed and an insolvency practitioner will calculate a new schedule for making one payment each month that is split between creditors.
There are certain criteria that need to be met to be eligible for this so you will need to look into things first.
Informal Agreement.
Choosing to attempt to set up any type of informal arrangement with your creditors means that you have got to contact each of them to come to a financial agreement on how much you can pay each month.
The major disadvantage to this is that it is in no way a legal agreement so there is no guarantee that your creditors will stick with the agreed terms.
Loan to Consolidate Your Debts This can be a good option if you have more than two or three creditors and will be able to keep up with the monthly repayment terms.
You need to make sure that you properly look into the terms of any loan though as you will be paying interest on any amount borrowed and this can sometimes be extremely high.
If you are unsure over which debt solutions are the best option for you in your circumstances then you should consult an independent financial advisor to get a better understanding before making your choice.
Some of the options that are out there may not be appealing to you or may not be needed so it important to try to understand a little bit about them.
We have given a brief outline of some of the main ways that you can choose to start your financial recovery with.
Declaring Yourself Bankrupt.
For those people who are in the most serious financial trouble, this can sometimes be the only viable option.
Filing for bankruptcy will result in your debts being cleared but you will also be tarred with its brush for a good few years after it as well.
Choosing this option could also have an impact on you career depending on the position you hold and you will definitely find it difficult to get any type of credit.
IVA Agreement.
If you choose to go for an Individual Voluntary Arrangement then you will not be faced with the same situation as bankruptcy as the agreement is not made public knowledge.
Your personal financial situation will be assessed and an insolvency practitioner will calculate a new schedule for making one payment each month that is split between creditors.
There are certain criteria that need to be met to be eligible for this so you will need to look into things first.
Informal Agreement.
Choosing to attempt to set up any type of informal arrangement with your creditors means that you have got to contact each of them to come to a financial agreement on how much you can pay each month.
The major disadvantage to this is that it is in no way a legal agreement so there is no guarantee that your creditors will stick with the agreed terms.
Loan to Consolidate Your Debts This can be a good option if you have more than two or three creditors and will be able to keep up with the monthly repayment terms.
You need to make sure that you properly look into the terms of any loan though as you will be paying interest on any amount borrowed and this can sometimes be extremely high.
If you are unsure over which debt solutions are the best option for you in your circumstances then you should consult an independent financial advisor to get a better understanding before making your choice.
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