Are you tired of worrying about debts? Well, that’s what we regularly hear at Debt Support Trust, a registered money advice charity. That’s why we help people get back out of debt, as quickly as possible.
All debt solutions need to be affordable, so that depends on how much money you have available each month after you pay your regular monthly bills. The right debt solution will also be determined from your level of unsecured debt.
Take between 5 – 10 minutes and take the debt test below. It’ll give you, in confidence, an answer on how you could resolve your credit card and other debts.
You can also call Debt Support Trust on 0800 085 0226 for debt advice from a not for profit charity.
5 Popular Debt Solutions
There are solutions to debt problems and you don’t have to be in debt forever. Many people get into debt accidentally, in fact, the most common reasons for debt are because of unemployment/ reduced income, divorce or separation or a change in personal circumstances leading to a money problem.
There are ways these problematic debts can be rectified. These include:
1.Token payments: If you are unemployed or have a low income you could consider making token payments to your debt. This is where you pay one low monthly amount to each creditor, until your situation improves.
2. Debt management plan / Debt arrangement scheme: Depending on your location, you could be suitable for either one of these solutions. You pay one monthly amount to your debt each month and it’s managed by another party, so you don’t have to deal with your creditors.
3. IVA: A formal debt solution in England, Wales and Northern Ireland. You pay one affordable payment, often for 5 years and at the end any interest or charges is cleared and you’re debt free.
4. Trust Deed: A Scottish formal debt plan to repay what you can afford, typically for 4 years. You pay what you can afford and at the end your remaining debt is cleared.
5. Bankruptcy: A solution which can be entered via a number of routes to resolve debts you can’t afford to repay.
The First Step
In taking positive action to resolve any debt problem you must first admit the problem exists. A quick checklist to determine if a problem exists is:
1. Do you struggle to make your payments to your credit cards and other debts every month?
2. Do you often have no money left at the end of the month because you have paid your debts?
3. Are you sometimes late in making your payments to your debt or have you received correspondence from the companies you owe money to saying you’ve not made payment?
4. Do you worry about debt in the morning or last thing at night?
If you identify yourself with any of the above statements then Debt Support Trust may have an answer to help you. You can seek professional money advice from a registered charity today through calling 0800 085 0226 or completing the debt test below.