In the UK, thousands of people are unable to pay off their debts. Many have got in debt through no fault of their own. Recently, many people have been laid off, wages have been cut and the cost of living has soared.
Seek Debt Management Help Early
With the right advice, in most cases, what they owe can been restructured and paid off in a more manageable way. The key to managing debt is getting advice early and following that advice to the letter. In the UK, if you find yourself in a situation where your debt repayments are far in excess of what is coming in there are several mechanisms available to help you to get a fresh start.
One possibility is to declare yourself bankrupt. Should you do this all of yours assets have to be sold and the profits from those assets distributed amongst your creditors. Once this is done, any debt you have still not paid off is no longer owed. This means starting from scratch financially.
Luckily, there are two other, less drastic ways to manage high levels of debt. You can make either a DMP debt management plan or an IVA individual voluntary agreement to restructure your debt.
In both cases, you are pulling all of your debts together, which allows you to pay them off at a more manageable rate. Using a debt management company to negotiate with your creditors on your behalf the amount of interest you pay is usually brought down to manageable levels. Some of the debt may even be written off.
Free Debt Management Advice
However, it is important that the advice you seek is from a good source. There is plenty of free debt management advice available via charties such as The Citizens Advice Bureau. However, demand is such that you can wait for quite a long time before actually speaking to anyone.
Given that in most cases of serious debt they will advise you to put together an IVA, DMP or go bankrupt it makes sense to seek advice from a debt management company straightaway. Just be careful to seek advice from a company who is a member of DEMSA. These firms offer advice that follows strict standards to ensure the advice they give is sound and reliable.
To find out more about debt management visit the Debt Free Direct website.
