Your Money Experts - Debt Solutions

Most people feel that the UK Insolvency / Debt solutions industry is a minefield. There are so many options, but so few truly independent advisors.

Many so called advisors are merely selling their own particular product or service, others are using call centres where the person who is advising you has no real knowledge or experience of debt & is just working from a sales script. So what are your main options?

Well, theres a lot to be said for brevity so, Ill keep this nice & brief;

1. DEBT CONSOLIDATION take out a new loan to consolidate your debts into 1 easily manageable payment. The credit crunch has made this option much harder particularly for people with adverse credit ratings.

2. DEBT MANAGEMENT Utilise the services of a Debt management Company to deal with all your creditors on your behalf, you make one affordable payment & they apportion/share it amongst your creditors .

3. UNFAIR CREDIT AGREEMENT AUDITS this option is very widespread at the moment & comes in many different shapes & sizes but some experts are questioning whether it will actually work or not, particularly now that the Government own 50% / 60% of some of the major banks. This option could work & if it does all or some of your debts could be written off, but beware the sharks Ive heard reports of Companies charging large up-front fees & then doing nothing/very little for months whilst other Companies are charging large back-end fees using CFAs (conditional fee agreements) if youre unable to pay their fees they could (and will) petition for your bankruptcy.

4. IVAs / INDIVIDUAL VOLUNTARY ARRANGEMENTS; this could be the best option for many people with debts over 15,000.Up to75% of your debt is written off & the remainder is repaid over a period of time (up to 5 years) with 1 monthly repayment. However, selecting the right Insolvency practitioner for an IVA is very important; choose one of the dodgy ones & you could easily end up paying thousands, & still end up bankrupt (I have personal experience of this).

5. BANKRUPTCY; The last resort for most people but the only real option for many. An opportunity to draw a line in the sand by writing off all your debts. As I say though, this really should be viewed as a last resort due to the restrictions & inconvenience bankruptcy causes. Youll generally be discharged from bankruptcy within 12months but give serious consideration to an IVA before you go down this route.

The most important thing to remember is to obtain quality independent advice and establish which option is best for you & your circumstances. Many Debt advisers/experts are selling one particular debt solution, so theyre bound to say that their solution is better than all the others, they wouldnt be in business for very long if they didnt

If you need help choosing the right debt solution for you & your circumstances, give me a call on 0800 533 5370 now to discuss your situation further.

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