When struggling to manage a debt problem, it’s not uncommon to ask “How can I get out of debt free”.
We explore how you can become debt free and what options exist to minimise the amount of money you have to pay.
Debt advice can often be free. Many organisations which operate a for-profit debt advice service will ask for a payment for providing debt advice. However, other services exist.
Your local Citizens Advice Bureau can provide free face to face debt advice. Alternatively, Debt Support Trust provides a free telephone based debt advice service which you can access on 0800 085 0226.
Charities do not charge for their services and will not ask you to make any payments or donations.
The information you provide a charity is free, confidential and impartial, which is why speaking to a charity is often the best solution to a debt problem.
While many debt advice charities will offer free debt advice, they will not be able to supply a free debt solution. It’s important you are aware that some debt solutions will cost money, however many will not.
Negotiating with creditors
When you negotiate with creditors this is one solution to debt which will not incur a fee or charge. This can be a good option if your unsecured debts, such as credit cards, personal loans and overdraft debts are below £5,000.
Debt Management Plan
There are hundreds of debt management providers in the UK and the majority charge. However, there are some free organisations which will not charge you for setting up a debt management plan. This means you will be debt free quicker.
IVA and Protected Trust Deed
An insolvency solution, like an IVA or Protected Trust Deed (Scotland only) requires a licenced insolvency practitioner. These insolvency practitioners have staff producing proposals and contacting creditors. Any IVA or Trust Deed will come with fees attached. The fees are not paid directly by you, but do come from money which you have repaid each month. This means less money is returned to your creditors because the Insolvency company takes their share from the money first.
Becoming Debt Free Advice
Advice on becoming debt free is available from a free debt advice charity like Debt Support Trust. If you would like debt help, please telephone 0800 085 0226 or complete a confidential debt analyser.