Every month when you open your credit statements and see the outstanding bill increase do you ask yourself, “How do I reduce my debt”? If so, you’re not alone. Most people we speak to want to reduce their debt or even write off a percentage.
A debt solution can help you to become debt free and with a charity like Debt Support Trust we are focussed on helping you reduce your debt.
We want to see everybody become debt free. It all starts with a call to Debt Support Trust on 0800 085 0226.
How Do I Reduce My Debt?
The first stage in trying to deal with debt is to seek professional help. We all turn to different people so it may be that you speak to a friend, family member or come directly to a charity like Debt Support Trust.
Our advice is free and impartial. Anything you tell us is confidential and we will not share your details with anybody else.
Before we can help you to reduce your level of debt we need to understand how severe the debt problem is. We ask a couple questions about your situation, who you owe money to and whether you can afford to repay anything towards your debt.
This question and answer stage helps our qualified volunteers determine which solutions would be best for you. Once we know a little about your personal and financial situation we explain all of the available debt solutions and what the benefits and negatives are.
Debt is never as scary as it seems when you have a qualified advisor on your side helping you.
Debt Solutions to Reduce Debt
There are various debt solutions which will help you to reduce your debt, or stop the debt from growing. We look at each of these debt solutions and explain how they can help lower your debt level or reduce your interest.
Debt Management: The debt management plan requires you to repay all of your debt but in this solution your creditors may freeze or reduce your interest and charges to help you repay the money you borrowed.
IVA: Within an IVA you will be asked to make a monthly payment towards your debt, usually for 5 years. At the end of the solution all interest, charges and outstanding debt will be written off.
Trust Deed: In Scotland, a Trust Deed will help a person write off the debt they cannot afford at the end of the solution, along with the interest and charges.
Bankruptcy: You may be asked to pay into your bankruptcy for three years, however, at the end of the solution all interest, charges and outstanding debt is cleared and you are debt free.
Each of these debt solutions will have negative points too, which should be considered fully before deciding on the appropriate solution. For instance, your credit rating will be affected for 6 years.
Getting Debt Help to Become Debt Free
Debt charities can help advise you impartially on the money solutions which will enable you to resolve your debt problem. Some of these could freeze your interest and charges or even see a proportion of your debt written off at the end of the solution.
Usually you will be able to choose from a couple of debt solutions and the choice will be entirely your decision.
If you want telephone debt advice from a registered charity you can telephone Debt Support Trust for free on 0800 085 0226.