How To Deal With Your Debt Through Effective Debt Management Solutions?

Life is all about the ups and downs. You are bound to face financial crises at some point in life. Constant calls from creditors and lenders can make your life miserable. However, there are ways by which you can smoothly manage your debt burden. With the help of effective debt management solutions, you can free yourself from debts and other related problems.

Here, we will provide you some important debt management solutions and advice. These debt management solutions are many and vary from temporary repayment plans to bankruptcy. However, you cannot qualify for all debt management solutions. What you qualify for will depend on your credit rating, amount of debt and also your ability to repay.

Go through these debt management solutions to pull yourself out of the financial mess you are in.

Temporary Repayment Plans
If you’re unable to repay the entire loan at once, you can try to repay a small amount to your creditors. The Stepchange offer this solution and make your creditors that you’re willing to repay instead of simply running away
Administration Order
An administration order is basically a repayment plan that has been ordered and arranged by the County Court. This order helps to protect you from creditors and lenders. The stepchange helps you in getting the right option and related information accordingly.
Paying the Concerned Creditors
You can arrange for debt repayment with your creditors and lenders to get some grip on your worsening financial condition. Chalk out a budget to see how much you can afford to repay at the moment. Contact the creditors directly and arrange for the repayments.
Debt Consolidation
Consolidating your debt is basically opting for new credit to pay back your existing credit. This new credit is then termed as a debt consolidation loan. However, debt consolidation can be quite dangerous and can potentially worsen your situation.
Debt Arrangement Scheme
It is an effective way using which you can manage your debt. It allows you to use a debt payment program. Through the Stepchange debt management program, you can repay your debt with affordable monthly installments comfortable over a longer period of time.
Debt Management Plan
Using the Stepchange Debt Management Plan you can pay back your loan at an easy rate. You’re eligible to pay a reduced amount of your regular monthly payments. A third-party makes the monthly payments to the creditors on your behalf.
Debt Relief Order
A DRO or Debt Relief Order is issued by the government. It can write off your loan if you can’t repay within a stipulated time. However, you must fulfill certain criteria to be eligible for the DRO. You can opt for a DRO if your loan amount is small.
If you fail to pay your loan when they’re due, then it means you’re insolvent. There are several solutions for insolvency. But, to qualify for insolvency solutions your collective debt has to be more than your assets.
Individual Voluntary Arrangement
IVAs are formal agreements that you make with your lenders regarding the repayment of loans. These are legally valid agreements. Through Stepchange IVA, you can repay the debt either through a lump sum or through a period of 60-72 months.
Protected Trust Deed
A Scottish trust deed or protected trust deed is a formal agreement that you make with your creditor. It enables you to make payments at an affordable rate. A trust deed is usually valid for four years. Thereafter, the unsecured debt would be removed.
Minimal Assets Process(MAP)
If you do not have sufficient income or assets to repay your loan you can apply for bankruptcy through MAP. However, you must remember that MAP comes with many risks along with its benefits.
Releasing Equity
This is a very helpful debt management solution that you can avail if you’ve reached your retirement age. You can release the equity on your home to use the money for debt repayments. Our Stepchange debt advice offers a collective set of the debt management solution which are designed to help and get all shorts of the debt related solution.
Selling Your Assets
To repay back some amount of the debt you can consider selling some of your assets. It can be a car, a watch or any other immovable assets. You can sell only those items which you own completely.
Remortgaging is basically replacing your existing house mortgage with a new one. You can go for remortgaging by choosing a different lender. Alternately, you can also change the products with the current lender. Remortgaging releases the equity of your house and reduce mortgage fees.
Surrendering Your Property
If you feel you are unable to make the mortgage payments on time, you might consider selling your house. Instead, you can look for a house that you can easily afford. Although finding new property comes with some expenses, it can save you from further debt. You can take our advice and call on The Stepchange number for more information
Sequestration is nothing but another name for Scotland's bankruptcy. This is one type of insolvency that allows you to write off your loan that’d take several years to be repaid. To apply for bankruptcy, you often need a certificate of sequestration. You can get this certificate from any debt advisor.
Settlement Offers
If you receive a huge amount of money then you can consider settling the debt entirely. You might have received the money by selling assets, through inheritance or gifts. Paying a lump sum amount will make the creditors write off the rest of the debt. There are certain good money advice which are offered by us making your debt manageable.
This is the last solution that you must resort to. If your financial condition is extremely fragile and there’s no hope of recovery, you can declare bankruptcy. You can consult with our debt expert and get some bankruptcy advice on the topic. With the declaration of bankruptcy, all your debt will be written off.

To sum up, the debt burden can be quite frustrating, driving you to depression. However, you can always take the help of debt management solutions. These solutions can effectively help you to systematically get out of your debt.

Talk To Our Experts
Request Call Back