Writing Off Debt And The Options Available To You

Even in this restricted lending environment, it is much easier to accumulate debt than it is to repay it. At the end of February 2012, the amount of personal debt outstanding in the UK was a mind-boggling £1.457 trillion. This translates to an average of £29,671 owed per UK adult, which is equivalent to 123 percent of average earnings.

Writing off debt and all the options available to you can be clearly explained by one of our friendly debt experts. You may qualify for an IVA (Individual Voluntary Arrangement) which could help you write off up to 85% of your debts without having to go bankrupt. We can access and review all the debt write off options available to you today.

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A recent Co-operative Bank survey indicated that 70 percent of UK residents have some type of debt issues and 29 percent of them are not prepared to deal with the situation

Debt is affecting people of all ages and is not a new situation for many. According to Prudential research, ten percent of UK residents who planned to retire this year are deferring, with 68 percent of them saying they cannot afford to do so. Twenty-two percent of the Co-operative Bank survey respondents reported being in debt for longer than five years.

Half of the respondents indicated that their debt situation had worsened during the past year. Many members of the younger generation lack knowledge regarding personal finance, with 51 percent of full-time students age 16 to 18 telling Chartered Insurance Institute that debt is something that everyone experiences.

These statistics reveal that if you are in debt, you are not alone. Though there is often safety in numbers, that is not so in this situation. Swift action is required to deal with debt or things will become worse. Right now, you may have several options for managing your debt. However, that may not be the case if you procrastinate. Our professionals can help you write off debt and begin living without looking over your shoulder.

Getting Started

A savings account balance is not required to begin managing debt. However, getting debt under control should enable you to eventually begin saving money to prepare for emergencies. You do not want to be among the 20 percent of Brits who have not set aside savings for unexpected situations, according to the Co-operative Bank, or the 21 percent who have no savings at all, according to uSwitch.

You want to be in the 31 percent who told the Co-operative Bank that they make monthly contributions to their savings account.

Whether you have a single loan or owe money to more creditors than you can count on two hands, we can help you. There is no one “right” way to handle debt because the solution depends on the situation. Our debt management professionals will review your situation, determine the amount of debt that can be written off, and propose the most effective way to accomplish this. All you need to do is contact us and provide the information we request.

Ways to Write Off Debt

A Debt Management Plan (DMP), Individual Voluntary Arrangement (IVA), debt consolidation loan, and bankruptcy are four common ways to write off debt.

Learn more about each one below and then let us help you pursue the best option:

Debt Management Plan (DMP)

A DMP is an informal way to handle unsecured debt of between £3,000 and £12,000. It is designed for people who require resolution over the short-term due to illness or redundancy that caused a temporary decrease in their income. With a DMP, an individual makes debt repayment arrangements directly with creditors. The agreement is not legally binding and a creditor is not required to agree to it. If you need help establishing a DMP, contact us because we are the experts.

Individual Voluntary Arrangement (IVA)

An IVA is a formal government program that allows consumers to write off up to 75 percent of their unsecured debt totaling £12,000 or more. Residents of Scotland have an equivalent program, called a Trust Deed, that allows them to write off as much as 90 percent of their debt totaling £10,000 or more. Read more about this debt management technique on our site and contact us to determine whether it is an appropriate solution.

Debt Consolidation Loan

A debt consolidation loan is used to repay existing unsecured debts, leaving the borrower with only the loan to repay. Total repayment is reduced because the loan interest rate is lower than rates for credit cards and other expensive debts. The repayment period is extended, making repayment affordable. Once the loan is repaid, the individual has no more unsecured debt. We can help you find a low-interest debt consolidation loan.

Bankruptcy

Bankruptcy is the most extreme way to write off debts but for some people, it is the best or the only option. Consumers can write off unsecured debts such as credit card balances, unsecured loans (except student loans), unpaid taxes, utility bills, and even County Court Judgments, through bankruptcy. Bankruptcy is a complex process but we can help you navigate through it.

Financial troubles can affect every aspect of your life. What begins as a small income shortfall that results in a late credit card payment can quickly develop into a situation of falling behind on utility and mortgage payments. This puts the lifestyle at risk and when things become this severe, failing to take action can result in homelessness. There is no reason to let things get to this point because we have the knowledge and tools to help you manage your debt today.

Understandably, many consumers are reluctant to seek help for debt problems because they are embarrassed. Rest assured that our representatives are completely objective and professional. There is no judgment involved, only fact-finding, discussion, and recommendations. The entire process is confidential and involves no obligation. Read our site, contact us, listen to what we have to say, and then make your own decision about how to handle your debt.

The time to begin writing off debt is now. Delaying will only make the situation worse and turn something that could have been avoided into an inevitable result. Learn about your options for getting debt under control and then let us help you do it.

You will sleep better at night and face your bills with confidence, not fear. Do not become a debt statistic!