If you feel that an IVA (Individual Voluntary Arrangement) is not for you, then there are other alternatives.
It is important that you always seek professional advice before you enter any financial programme. Please call our advisors free on 0808 131 9101 to see what other debt solution alternatives are available.
Unsecured Lending.
If you have debt problems and a poor credit rating, then you might find it hard to obtain an unsecured loan at a sensible interest rate.
If you have already explored borrowing from your bank or increasing the limit on your credit cards, then you probably don't need to borrow any more money, but make your existing debts more affordable. For this you should consider Debt Management.
Debt Management.
A Debt Management Plan is an informal debt repayment plan with your creditors, and is most suited to those with low debt levels.
They will allow you to pay just one low affordable monthly payment to your creditors. Unlike an IVA, none of your outstanding debt can be written off, but creditors are often willing to freeze any interest or charges.
Secured Lending.
Through a secured loan, you will be able to consolidate any of your outstanding debts. This will give you one lower monthly payment, which can be a better way of organising your outgoings.
Before you agree to a secured loan you need to make sure that you can afford it. A secured loan will be secured against your house, which means that any missed payments will put your home at risk. You should seek expert advice to ensure that you can afford the repayments.
Bankruptcy.
Bankruptcy is always the most serious debt solution, and should only be considered when all other debt solutions have been fully exhausted.
As part of your Bankruptcy Order, you will have to sell your home in order to make some form of repayment to your creditors. This would not happen with an IVA, although you may have to release some equity.