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What Types of Debt Help Are Available Today
Over the past decade Britons have become ever more dependent on supplementing their income with the help of loans and credit cards. This was all well and good when the economy was booming, finance was readily available, and people were safe in their jobs.
Unfortunately this is not the case anymore and fewer people will qualify for a loan, and therefore the ever growing credit card balances are pushing their finances to the limits. Without the ability to refinance those debts into a cheaper consolidation loan to ease the burden, it is difficult to know what options are open to them.
As a result of the current economic situation All About Loans one of the internet's main loans brokers has gone into partnership with Chase Saunders one of the UK's leading providers of debt help and solutions. As a result of this we are now able to offer a more complete service to our applicants, we felt this was a necessary move to make as fewer of our applicants are being accepted for loans, and as a result were at risk of their debts ruining their lives. Through Chase Saunders we now offer "Debt Management Plans" and IVA's (Individual Voluntary Arrangements).
What is Debt Management? Debt management can be one of the quickest and easiest solutions to any debt problems. It will involve a review of your financial situation by a debt advisor, who will then negotiate a structured repayment plan on your behalf. Your monthly repayments will be set at a figure that you can comfortably afford, and for an agreed length of time, and the interest will be frozen. Any payments you make will be made to the debt management company and they will distribute your payments to your creditors and at the end of the term your debts will be cleared, in most cases you can reduce your debts by up to 50%. In order to qualify for a debt management plan you will need to be struggling with your finances and owe a minimum of 1,000 pounds in unsecured debt, with at least 2 different creditors, you will also need to reside in England or Wales.
What is an IVA? An Individual Voluntary Arrangement (IVA)(Trust Deed in Scotland) is similar to a debt management plan in as much as your creditors will be contacted on your behalf and a reduced payment plan will be negotiated. A monthly payment will be made to your IVA Supervisor for an agreed period of time; quite often your monthly repayments will be reduced by up to 85%. If however you have any assets such as an endowment policy with equity, part of this at least may have to be made available to any property creditors. You can apply for an IVA if you are unable to pay your debts and facing bankruptcy (even if you are subject to a bankruptcy order), you will also need to have over 15,000 pounds of debts with two or more creditors. As with the debt management plan, interest will be frozen and all demand letters and telephone calls will stop, therefore reducing stress and anxiety levels.
If you are struggling with your debts and being pestered by bailiffs sent in by your creditors, the release of pressure that can be achieved by going into a structured arrangement of any kind is life changing, especially when the alternative is to bury your head in the sand and hope it will all go away.
About the Author Steve Smith writes for allaboutloans where we offer all kinds of debt help, from individual voluntary arrangements IVA's to debt consolidation loans. Visit Today
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