Affordably pay down your debt for debt solution in UK

Debt relief program as an alternative to bankruptcy to consumer

A debt relief program, debt management plan and Individual Voluntary Agreement on bankruptcy alternatives. Quickly pay down your debt through a UK debts solution.

Debts Solution

Debts Solution

An increasing number of consumers are direly seeking an option of evading the debt in the UK. Price Waterhouse Coopers illustrated there were 120,000 personal insolvencies in 2009 were because of severe debt problems. A UK debt solution could give a good alternative to bankruptcy.

Are the debt free solutions necessary?

The Bank of England gave a report that the credit card debt written off by the banks increased from £812m to £1.6b within just the 3rd quarter of 2009. This implies that the consumer is not forgiven. A debt relief program aides consumers who are struggling to meet a substantial agreement with creditors to pay down debt.

Paying down debt using a UK debts solution.

The aim of debt relief program is to reschedule the repayment and make it more affordable, minimize debt, quickly paying down debt and prevent additional credit contact. Though some of the consumer debt relief programs are merely voluntary in nature, some are legally binding. Bankruptcy will have negative implications to the individuals credit-rating and make taking loans from lenders more difficult for a period of up to six years.

Individual voluntary arrangement. [IVA]

This is the major alternative to bankruptcy and involves paying down debt more than five years. 75% of the creditors (in value) must approve it at a creditors’ meeting. It is legally binding with creditors to repay a lower percentage of the amount owed. Additional charges and interests are frozen. An IVA makes the homeowner remortgage at the end of year four supposed contribute some money to the deal. After completing repayment an Bankruptcy practitioner issues a certificate of completion.

Paying down debt with a debt management plan

The aim of this solution is to present affordability to the consumer. It analyzes the budget, a monthly repayment which is affordable is determined. The client then makes one repayment each month to a mediator who will disseminate the money to creditors. The charges and interest may be frozen; there is no legal obligation for the lender to do so. This plan is an entirely voluntary and between the debtor and his creditors.

Debt relief order.

For those who own less than £15,000, this is a debt relief program for them. To qualify as well, you should have assets less than £300 and a disposable income, which does not exceed £50 a month. This is a form of bankruptcy that allows one to be free of debt in just 12 months. Its costs are £100.

Sources: “Debt statistics-February 2010.”