Debt Help & Advice - Your Options Explained

Debt Management

Advantages

• Your monthly repayments will be reduced
• You may be able to freeze interest on your debts

Disadvantages

• Your credit rating may be slightly impared
• You may be paying your debts off for a longer period of time

IVA (Individual Voluntary Arrangement)

Advantages

• As much as 60-70% of your debts may be written off
• Be clear of debts included in the arrangement after 5 years
• Fees are incorporated into the monthly contributions agreed with your creditors

Disadvantages

• You can not get credit for the length of the IVA
• Your credit rating will be affected for another year after the IVA is complete
• Homeowners may have to revalue their homes in the 4th year and release equity to cover the debts if the value has increased

Re-Mortgage - Available to homeowners only

Advantages

• Your mortgage and other debts will be combined to one affordable amount
• Interest costs on a re-mortgage may be much lower than those you pay on credit cards or other loans

Disadvantages

• You risk losing your home if you do not keep up the repayments

Secured Consolidation Loan - Available to homeowners only

Advantages

• Your monthly payments will be reduced
• If your debts have very high interest, it may even reduce your overall debt

Disadvantages

• Your debts will run over a longer period of time
• You will have less flexibility to negotiate your repayments again if your circumstances change

Bankruptcy

Advantages

• Your debts will be written off after 1 year

Disadvantages

• You may be forced to sell assets, such as your home
• News of your bankruptcy will be published openly