Debt

Our guides to Debt

Find out more about debt, ways to avoid getting into debt and the various options you might have when dealing with debt, including Debt consolidation, Debt Management Plan, Individual Voluntary Arrangements (IVA) and Bankruptcy

 

Debt is a word that encompasses a wide spectrum of circumstances – and not all of them are bad. For example, you might have bought a house using a mortgage with a cracking low rate or have a balance sitting on a 0% purchase credit card.

It’s when you are unable to service your debt and it starts to spiral out of control that problems start. But even at this point one thing is for sure – panicking or sticking your head in the sand won’t make it better.

You should consider contacting any creditors you are unable to pay and explain your situation. You shouldn’t worry about this as all financial providers must abide by a set of principles called Treating Customers Fairly – or TCF.

This means they have a duty to talk to you and be fair and transparent about your options, which could include a payment holiday or a freeze on interest payments until you can get back on your feet.

If your debt problems run deeper than this, you should contact a debt charity such as StepChange(0800 138 1111)National Debtline (0808 808 4000) which is run by the Money Advice Trust.

An independent assessment of your situation for FREE and take you through your wider options. These could be as painless as a debt management plan (DMP) which requires you pay back just what you can afford to each month.

 

 

 

Debt Guides

Advice on Debt

In most cases, borrowing money will mean paying interest on the amount you owe. And once you have started, it is easy to get dragged down into a debt spiral that can prove disastrous for your finances.

Bankruptcy

Bankruptcy is a form of insolvency. A person (or business) may be declared bankrupt if they owe more money than they can afford to repay.

Debt IVA

Coping with debts can be extremely stressful, but if yours have spiralled out of control, an Individual Voluntary Arrangement (IVA) could provide one way to get back on track.

Debt Management

Managing your debts so that they don’t spiral out of control is vital, but it can be hard to know where to begin.

Debt Management Plans

Is a debt management plan right for you?

Debt relief orders

A debt relief order (DRO) works a bit like a bankruptcy order, but is aimed at people who don’t own their home, have little spare income and debts of less than £15,000.

Insolvency solutions

It’s all too easy to run up debts, but it’s much harder to pay the money back.

Trust deed

If you are in serious debt, you might struggle to see a way out. Perhaps you don’t know if you can afford to pay back the money you owe.