| These days people are incurring more debt than ever | | | | debts of less than £10,000. While in a debt |
| before and it sometimes becomes more than they | | | | management plan, high monthly fees are often |
| are able to manage due to illness, unexpected | | | | charged and interest and penalties will continue to |
| expenses or a job loss. Fortunately, there are many | | | | accrue. |
| tools today to help manage your debt problems. It is | | | | Debt consolidation Loan |
| important to fully understand the options available to | | | | As a home owner you may be able to utilize a debt |
| you as each one is appropriate for a particular set of | | | | consolidation loan to manage your debt. In many |
| circumstances. | | | | cases you can borrow up to 100% of the value of |
| IVA (Individual Voluntary Arrangement) | | | | your home and utilize the funds to repay your |
| With an IVA, or Individual Voluntary Arrangement, | | | | unsecured debts. This can be an excellent choice |
| you can legally write off part of your current debt | | | | because you can often lower your total monthly |
| and repay the remainder. This allows you to reach a | | | | payments, but it is also important to consider that |
| more affordable monthly payment and upon | | | | you are using your home as collateral. |
| completion, be debt free. It also protects your assets | | | | Bankruptcy |
| (such as your home) while stopping interest and | | | | The final option in dealing with overwhelming debt |
| penalties from accruing. This type of arrangement is | | | | problems is bankruptcy however, before considering |
| appropriate for individuals with substantial unsecured | | | | this as an option you should ensure that all other |
| debt that they are unable to pay. | | | | options have been fully explored. In a bankruptcy, |
| Repayment Plan | | | | your assets will be sold off and the proceeds will be |
| A repayment plan, also known as a debt | | | | distributed to your creditors and all debt will be |
| management plan is usually only appropriate for | | | | cleared. Your bankruptcy will be advertised in your |
| individuals with temporary financial difficulties and | | | | local newspapers and the London Gazette. |