When you find yourself in debt, life can seem impossible. There never seems to be enough money to cover expenses and the situation seems like it will never improve. It doesn’t have to be this way and there is help available. Here at National Debt Help, we help people to regain control of their finances every day.
This guide offers simple debt advice to help you take control of your financial situation and provides information on how to get out of debt.
Its natural to feel overwhelmed when faced with money problems and it can be tempting to try and ignore the situation because it feels too difficult to cope with. Admitting that your debt has become a problem that you need help to solve is the first step towards changing your life for the better.
Though it may not seem like it at the time, sitting down with a calculator and your bills, credit card and loan statements is a positive move in the right direction as you can see exactly how much your monthly outgoings are and who are you are paying. Adding up the total amount you owe is a good start but it will also be extremely helpful to look at how much each of your direct debits or standing orders are costing you.
Before investigating options such as Debt Management Plans or Individual Voluntary Arrangements, it can be helpful to look at what you are spending your money on each month. If you can manage to cut back on luxuries or perhaps save money by shopping at cheaper supermarkets, this can genuinely make a considerable difference to how much you have left each month.
There are now several debt relief options available and depending on your situation, solutions such as an IVA, DMP, DRO or bankruptcy could be a way to reduce your monthly outgoings. Here is a brief overview of some of the options that are currently available:
IVA (Individual Voluntary Arrangement)
For those who owe more than £5000 to different creditors, an Individual Voluntary Arrangement or IVA can be very effective. This is a legally binding agreement that allows you to pay a fixed amount each month that is negotiated between you and your creditors. This type of arrangement usually lasts for 5 years but in exceptional circumstances, it can be extended to 6. This type of agreement can affect your credit score and is not applicable to debts incurred from student loans or child support payments, however, it can be an effective way to reduce the amount you need to spend each month without having to provide an upfront fee or payment.
DMP (Debt Management Plan)
A DMP or Debt Management Plan means that you allow a designated company to review your income and advise you on how much you can realistically afford to pay to your creditors each month. This is an informal agreement that can be changed at any time and if you happen to find yourself in a better financial situation, you can cancel these plans without a problem. Though they do not have to accept reduced monthly payments or interest rates, many creditors agree to this type of plan as it guarantees they will definitely receive some money from you each month. National Debt Help do not currently offer this option, but it is available from other providers.
DRO (Debt Relief Order)
A DRO or debt relief order is one of the best options for those who don’t own a house or any assets but have unmanageable debt of up £20000. This will affect your credit rating and remains on file for six years, however, after the initial set up fee of £90, you will not be expected to pay anything at all towards your debt and providing your financial situation does not improve within a year, any money you owe will be totally written off.
National Debt Help are here to help you get out of debt. Whether it’s a small debt or a big one, we’ve got the expertise to make your money worries a thing of the past. Simply fill in our online debt calculator or give us a call on 0800 002 9051, and we can give you your options, and then get started on doing the hard work on your behalf.
We’re experts with years of experience, so you can trust us to stand up for you when life seems hardest. We’ll help you meet the qualifying criteria, deal with your creditors and send you off on your debt-free way. We are pester and judgement free, our friendly staff have a 9.8 Trustpilot rating through our excellent customer service.
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