We are coming to the end of 2012 now and with the new year just around the corner, you may well be looking to get some help with debt.
When you are in debt, it can sometimes be hard to know where or who to turn to, and what you can do to get some help with debt.
Don’t worry though, there are a number of organisations out there who can and will help you. There are also a number of different solutions available, each with their own advantages and disadvantages.
In this post, I look at the various options you have available in order to start sorting out your debt problems. I also provide links to further reading elsewhere on this blog so you can find out more.
Your own Debt Management Plan
Not for the faint hearted but setting up your own debt management plan is one of the options available to you. It is a lot of work at first, but things get easier once your plan is established.
Just so you know, this is how I am currently managing my own debt issues. At the beginning I had around 20 different creditors to pay.
Whilst it was a lot of work to get everything sorted, it has made my life a lot easier since I did this. Contact from the companies I owe money to is minimal and life is a lot quieter, apart from this blog that is!
However a debt management plan may not be the most suitable option, especially if you are in a lot of debt and don’t have much money to make payments. This type of plan is also not a formal solution and a creditor could still take further action against you if they wish to do so.
You can also get a free debt management plan from one of several companies. This would mean less work on your part as the third-party would manage this plan on your behalf. I list examples of organisations who can help you with this at the end of this post.
Find out More about Debt Management Plans
– What is a Debt Management Plan?
– Setting up your own Debt Management Plan
Bankruptcy
You could consider bankruptcy as an option. However this may not be the best solution for your own debt problems.
It would be wise to seek the advice of a qualified professional before taking this drastic step, especially if you have a lot of assets.
There are a number of repercussions when declaring yourself bankrupt so it is not an option to be considered lightly.
Find out More about Bankruptcy
An Individual Voluntary Arrangement
This may be a better alternative to the above two debt repayment solutions. However you should consider all the available options before committing to a specific solution to your debt problem.
Find out More about an IVA
A Debt Consolidation Loan
This could be an option for you if you are currently up to date with your payments but want to reduce the number of separate accounts you owe money to.
Sometimes a Debt Consolidation Loan can work out better for you, and other times it can make your situation worse.
You would need to still have a good credit rating for this type of loan so if you are already behind with your payments, you may find it difficult to be accepted.
It would be wise to seek advice from a qualified professional before taking on this type of loan. You certainly don’t want to make your situation worse as that would not be helpful to you.
Find out More about a Debt Consolidation Loan
– The Pros and Cons of a Debt Consolidation Loan.
A Debt Relief Order
A DRO is another option available in certain circumstances. It could be worth discussing this solution with one of the debt charities who I list further along in this post.
Find out More about a Debt Relief Order
– What is a Debt Relief Order?
Getting help with your debt
In the UK, there are several organisations who can assist you with your debt problems. Here are a few examples to get you started: –
StepChange Debt Charity (formerly Consumer Credit Counselling Service)
StepChange Debt Charity offer free impartial debt advice and can often advise on a suitable solution for your debt. The advice they offer is free and can be a lifeline, especially if you are becoming overwhelmed with your debts.
Payplan
Payplan can also assist you with your debt problems. Again the advice they offer is free and they will act impartially when dealing with your situation.
Debt Advice Foundation
The Debt Advice Foundation are another charity set up to help people with their debt problems. The advice they offer is free and impartial.
I hope the above information has been useful to you. Let’s look forward to getting our debts under control in 2013.
I am sure I will write some more posts before the year is out, but if not have a happy new year and I look forward to providing more helpful debt information next year. Visit the Debt Help Section of this Blog to get in touch with organisations who can help you.
