financial independence

What options do you have to take care of your debt

This is a sponsored review for trapped.co.uk a website which allows you to compare the various debt choices available to you and decide which solution best suits your circumstances which is the best debt choice you can make.

Debt is a nasty situation to be in it spirals and the longer you take to the deal with it the more out of control it becomes, its hard to know which options are best for you bankruptcy, an IVA or payment plan.

ivas (Individual Voluntary Arrangements) are an option when struggling to cope with the monthly repayments on unsecured debt.

Whats and IVA?

An IVA involves a legally binding contract between you and your creditors. In a IVA proposal you come to an agreement to pay only what you can realistically afford on your outstanding debts, you could be expected to pay just 25% of what you owe avoiding bamkruptcy.

Unlike debt payment plans an IVA needs to be arranged by a registered insolvency practioner, not all your creditors need to accept your IVA proposal to be bound by it. Once the majority of your creditors accept an IVA proposal you are legally bound to keep up your repayments on it so you should make sure you can comfortable afford to repay the monthly amount.

What are the benefits of a debt management plan?

A debt management plans can help lift the burden and stress of struggling with your debts, it can help free up your cash for paying your essential outgoings like your mortgage or rent. You will even have some cash to buy clothes or go on holiday.

A Debt management plan helps you avoid bankruptcy why do you want to avoid bankruptcy?

Bankruptcy means you will probably lose your assets such as your car and quite possibly your house, your credit file will be severly affected for the next 5 years. You will not be able to promote a company or be a company director for a period to be decided by the court at least One year.

Bankrupcy carries a stigma.