If you have high levels of unsecured debt that you cannot afford to repay then, as long as you qualify, an IVA is usually your best option. But there are other alternatives:
1. Debt Management
Debt Management is an alternative debt repayment plan to an IVA. It is an informal arrangement that allows you to pay just one low affordable monthly payment to your creditors.
2. Unsecured Lending
If you have a poor credit history and have missed payment then you might find it very difficult to obtain an unsecured loan at a sensible interest rate. A Debt Management Plan will mean that you do not have to make any further borrowings and will make your current commitments more affordable.
3. Secured Lending
Secured lending will allow you to consolidate your unsecured debts into one affordable secured payment. Secured lending means that you borrow money against an asset, most commonly your house. So it is important that you only secured debts on your property if you are able to make the repayments or your home will be at risk.
4. Bankruptcy
Bankruptcy should only ever be considered when all other options have been exhausted. Only take professional advice from a Licensed Insolvency Practitioner.
Please seek expert advice from those who will be able to assess your potential debt solutions according to your financial status. Contact our advisors today on freephone 0808 131 9108.