Debt Help
It can be a dangerous cycle applying for loan after loan to clear credit card after credit card or other loans. Generally the more loans and credit cards you are running up the higher the interest rates get and then you suddenly realize you’re not being approved anymore credit. You’re missing some payments and being late on others. So what is the next step? The next step is to get debt help.
Debt Help can come in the form of 2 main solutions. One is called Debt Management and is generally available if you owe between £3,000 and £15,000 to 2 or more separate companies. The debt management company will take control of all your creditors and you will pay them instead of the creditors. This makes it easy for you as you only have one payment. You are also not borrowing any more money. Lastly, you will not be receiving calls or letters about the debt you owe as the debt management company is handling everything.
Another option is an IVA and is generally available if you owe more than £15,000 to 3 or more separate companies. There are slightly more implications with an IVA as they are a legal agreement that lasts for 5 years but it is essentially the same process as a debt management plan.
The purpose of both is to reduce your current outgoings without borrowing additional money. Leaving you able to manage your money better from then on and without the worry of constant hassle from the companies that you owe money to.
