Credit Debt – You Can Eliminate Your Credit Debt in as Little As 12 Months

The number of people who are over their heads in debt in the UK has risen dramatically over the last few months as the economy has tumbled. More people every day are faced with the phone ringing off the hook with collection agencies wanted you to pay off the credit debt that you have run up in the last few years. Everywhere you look, whether it is on the television, in the newspapers or on the walls of the tube, you see dozens of companies offering you a variety of credit debt consolidation programs that promise to get you out of debt.

What Can You Do?

Being in debt and behind on your bills may feel like the end of the world, you are afraid to answer the phone and cannot look the postman in the eye as he gives you piles of debt collection notices. This is not the end of the world; in fact it can be quite the opposite as with the proper type of debt consolidation program you can get the phone calls and piles of mail to stop. There are credit debt loans available that if used properly can be used to pay off your debts and give you the relief you need.

One of the biggest choices people who are in credit debt must face when times get tight is making the choice to put food on the table and pay the essential living expenses or to pay the credit bills that you have piling up. It can be very tempting to just grab onto the first loan program that comes along thinking that you have to take it or drown in a sea of debt. Before you leap into a loan program that is going to leave you worse off than you already are take a little time to explore all of your options regarding credit debit relief.

Your Options

You can of course take out a debt consolidation loan, but before you do you need to use a consolidation loan calculator to help figure out exactly how much you owe, your total monthly payments and your final pay off. Then you can compare this information with the loan you are considering taking out. If the payoff on the new loan is too high or the payment is not significantly lower than the total of your current monthly payments, you need to consider other options.

Fortunately in the UK, you do have other options to help you get your credit debt under control without having to resort to bankruptcy. One of the most popular programs is the Individual Voluntary Agreement or IVA, which if done properly can eliminate as much as 75% of your credit debt and leave you with a payment that you can afford and have your debts paid off in 5 years. There are a few costs involved and if you fail to make the payments you may end up in bankruptcy court.
If you find yourself out of work and living on less than £50 per month after all of your essential bills have been paid you may have another option.

This situation is not considered tenable and the government has a program that can issue a Debt Relief Order to eliminate your credit debt. However there are strict guidelines that must be followed for a period of 12 months before you will be left debt free. Contact the Citizens Advice Bureau for more information of this and many other debt relief programs available