AdviceOnline | Debt Management

Many debt solutions are available to help you get your debts under control and its vital to understand your options before you make any decisions.

If you dont think you can get back in control of your finances on your own its important not to commit yourself to any debt solution before youve discussed your circumstances in depth with a specialist adviser.

Once they understand your situation they should be able to suggest a number of ways forward and perhaps recommend one as particularly appropriate.

A debt specialist might be able to help you:

• Repay your debts at an affordable amount in the shortest possible time.


• Deal with your creditors more effectively.


• Simplify your finances combining multiple payments into one probably lower monthly payment.


• Negotiate with your creditors asking them to reduce or even freeze the interest your debts are accumulating.


• Get back to financial stability.

Why not contact us for a no-obligations chat with one of our experts?

What is Debt Management?

It may be possible to reduce your monthly payments by negotiating with creditors asking them to accept lower payments and where appropriate reduce or even waive interest and other charges. You can do this yourself or you could ask a debt management company to help.

What is a Debt Consolidation?

Debt consolidation involves taking out a new loan thats big enough to pay off all / some of your existing debts.

What is an Administration Order?

If you owe under £5000 and have at least one County or High Court Judgment against you you can ask the court for an Administration Order. If granted this will group your debts together freeze interest and stop creditors from taking action against you.
Please note: if you own a home or other significant assets which could help you pay off your debt you will not be eligible for an Administration Order.

What is an IVA?

If you have substantial unsecured debts normally £15000 or more and cannot make your monthly payments but you have a reliable income an Individual Voluntary Arrangement IVA could be an appropriate way out of debt.

What is Bankruptcy?

Any creditor you owe more than £750 or any creditor who has obtained a CCJ against you can petition for your bankruptcy.

Debt consolidation for homeowners

If you have cash tied up in your home it could be a good way to consolidate your debts and reduce your monthly payments. By securing a debt against your home you may be able to get a lower interest rate than youre paying on unsecured debts like credit cards store cards and overdrafts.

Pros and Cons of Debt Consolidation

You must think VERY carefully and seek professional advice before you borrow money against your home as it could be repossessed if you dont keep up the repayments.