Help With Debt – Getting the Help You Need

Being in debt has become a way of life in the UK; unfortunately many people are beginning to find that they are further in debt than they can afford to pay for. If you find yourself in this position, do not be afraid to ask for help with debt as there are plenty of places available to help you bring your debt back under control and eliminate it in a reasonable amount of time. While there are no miracle cures that are going to make your debts disappear, there are options available to you that can help you pay off your debt and be debt free in as little as 5 years.

Taking the First Step

Actually if you have admitted that you are further in debt than you can afford to pay, you have already taken the first step. For the most part it is unsecured debt that is causing the problem for most people in the form of credit cards. In the last few years banks and stores have been giving credit cards out like they were candy with no though about the consequences should people not be able to pay the bills.

As a side note you have no doubt by now seen the advertisements on television by various companies who promise that they can clear you credit card debt or get it all written off. This is all just a come on, there are no legitimate ways to just wipe out your debt. Instead you need to go to an approved agency that handles debt counseling and can explain to you all of your options and get you real help with debt.

Your Choices

Thanks to several laws in the UK you have many choices to get the help with debt relief you need. Agencies like the Citizens Advice Bureau are there to give you plenty of free financial advice and information. They can also help you set up an IVA or Individual Voluntary Agreement; this is an agreement between you, your creditors and an IP of Insolvency Provider. The IP will contact all of your creditors and work out a deal whereby they agree to take less money than you owe them.

If you are more than £15,000 in debt this may be your best option as it will lower your payments and the amount of money you actually owe. On top of this the IVA is designed to pay off your debt in no more than 5 years. You can also opt for a debt management plan if you owe less than £15,000, this program is similar to the IVA but creditors are not legally required to participate in it.

You can also take out a debt consolidation loan and lump all of your credit cards into one more affordable payment, if you look around you can find low interest credit cards that will allow you to transfer the balances over, some of them even have 0% for balance transfers. Be careful though many of these have ballooning interest rates after 12 months. Take your time and talk to your debt counselor so that you can make an informed decision. You can be debt free as long as you follow the right line of debt reduction programs.