Debt Help

When seeking debt help, it is essential to have the counsel of a debt expert, so you know you are getting first-rate advice that is in your own best interests.

If ignored, debt problems can rise up and really bite. When they do, it is wise to know exactly what your options are. If you're facing a debt crisis, there are many more options available than you may think. Our debt help experts can advise on the choices that can lead to a debt-free life or why not take our free online debt test that will suggest possible debt solutions based on your situation.

Debt Help - What are the Options?

Although it often seems that there is no way for you to get out of debt, to pay all the bills and meet all the demands, there are many options. Whatever your situation, there is a tailor-made solution to meet your needs.

Whilst the options are many, they will fall into a few categories that, depending on your circumstances, have specific benefits. If you are seeking debt help then getting to know the options is the first, and often the most important, step.

Debt Management

Debt management simplifies your payment structure to just one monthly payment. With a debt management plan you don't take out another loan; instead monthly payments are worked out by a debt management expert who will arrange repayments with creditors on your behalf, based on only what you can reasonably afford.

A debt management plan is a debt help solution that:

• Reduces monthly costs to a manageable level.
• Allows you to clear your debts in as short a time as possible.
• Can reduce interest charges.
• Doesn't have the severe financial implications of a bankruptcy order.

Debt Consolidation

Debt consolidation means to merge all outstanding debts into a single loan. The consolidation loan is then used to pay off all other credit - loans, overdrafts, store and credit cards.

Debt consolidation can:

• Reduce monthly payments.
• Simplify outgoings into a single payment.
• Lower monthly interest charges.

IVA and Trust Deed

An IVA (Individual Voluntary Arrangement) is a legally binding agreement with creditors that benefits the debtor by:

• Limiting payments to an affordable level, based on your individual income and expenditure.
• Determining a fixed period of time over which payments are made, at the end of which all remaining debt is written off.

The alternative option, for those seeking debt help who live in Scotland, is to arrange a Trust Deed. Essentially the same as an IVA, a Trust Deed differs in only minor areas and is regulated under Scottish law.

Bankruptcy

Serious arrears and no way to pay them can be one of the most stressful experiences a person can suffer through. In more serious cases - where a person has amassed a large amount of debt, and payments far outweigh income - the best option may be to petition for bankruptcy.

If you live in Scotland, the term for Bankruptcy is Sequestration.

Next steps?

Based on your individual circumstances, we can advise on what options are best for you. We can also set up and manage debt solutions on your behalf.

Take our debt test or call Newtomorrow today on 0800 678 1234 and get the right debt help for you.