Options available for people struggling with debt

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Contending with a large amount of debt is stressful. Often, people find themselves in situations where their debts seem to be insurmountable. They work tirelessly to pay them off, but because of interest rates and new debts arising, they never seem to make a dent. 

Such people need a strong debt resolution strategy that accounts for all debts and manages them effectively. Heavily indebted people may feel like they’ve run out of options, but that is not the case. There are, in fact, many options available to these people, and that’s where we can be of help. 

As the IVA advisor, it’s not just our passion to help people get out of debt, but our duty. We are committed to helping people find convenient and effective solutions to debt, without them having to lose everything. 

Corporations and their enforcers have little sympathy for the people they collect debts from. We pride ourselves on our ability to offer a helping hand to the everyday person who is under the immense pressure of debt.

If you’re struggling to find a way out of debt, just remember that ignoring debts is the worst thing you can do, as they won’t go away. Instead, proactively address your debts, as that’s the only way to get back on track. 

Here’s some solutions that you can explore:

IVA (Individual Voluntary Arrangement)

IVAs can be a great way to get yourself out of debt. They involve an insolvency expert assessing your financial situation, then if you meet their prerequisites, the specialist negotiates a deal with your creditors to repay your debt over a period of time.

This is one of the primary ways heavily indebted people avoid filing for bankruptcy. IVAs take a toll on your credit score, but not as much as a large amount of unsecured debt. 

One fantastic benefit of IVAs is that the interest that is accruing on your debts freezes the minute the IVA is activated. Also, up to 90% of your debt can be wiped through an IVA!

Speak to an IVA adviser today and see if this option works for you.

DRO (Debt relief order)

Debt relief orders are a slightly more drastic measure and are suitable for people who do not meet the criteria for an IVA. DROs are designed to help people who are in serious financial turmoil and have no way of paying off the money they owe. IVAs are a better option if you have the ability to repay your debts, but a DRO might be suitable if not. 

You may be able to apply for a DRO if the following apply:

  • You cannot repay debts
  • Debts don’t exceed £30,00
  • You have less than £75 spare income each month
  • You’re not a homeowner
  • The sum of your assets is less than £2000
  • You haven’t had a DRO in the last 6 years and are not currently applying for another insolvency procedure, like an IVA
  • You were a resident in England, Wales or Northern Ireland in the last 3 years

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