There are many reasons people fall into debt difficulty - loss of income, having a baby, divorce or separating from a partner, sickness or bereavement - all of these things can make it very difficult to manage a budget.

You may fall behind with your rent, mortgage payments, credit card payments and other bills may mount up. Soon you can find yourself juggling payments and in debt. Many people struggling to pay their debts are often not sure who to speak to about debt advice or debt help.
With our 20 years of experience, Your Debts Cleared has helped thousands of people, just like you, solve their debt problems. We pride ourselves on giving the best debt advice or debt help. Our Debt free Helpline advice is always confidential & FREE, and we will determine the best solution for you.

This may be through an arrangement (under UK Government Debt Help legislation) with your creditors called an Individual Voluntary Arrangement (IVA). This arrangement will freeze any interest and charges being applied to your debts. Alternatively the debt help may be in the form of a Debt Management Plan. Both of these plans will allow you to make one affordable monthly payment to your creditors. Another solution could be consolidating your debts into one lower monthly payment through a consolidation loan or re-mortgage.

Debt management

Debt management plans are ideal for those with unsecured debts ranging from £3,000 to £14,500. It may be that your debts are a lot larger, in which case we would consider an IVA first and, if that is not suitable for whatever reason, then consider Debt management or other solution depending on your unique personal circumstances. Debt Management Plans are informal agreements and you would make a single monthly payment to us. We will distribute this amount between your creditors on your behalf.

IVA - Individual Voluntary Arrangement

The main difference between an Individual Voluntary Arrangement and other informal debt management plans is that it is a legally binding contract between you and your creditors. This means that you would reach an agreement with your creditors and would make arrangements to pay what you can realistically afford, typically over a five year period. The rest of your debts would be written off at the end of this period provided you have made all of the agreed payments into your IVA and adhered to its terms.

PTD - Protected Trust Deed

A Protected Trust Deed (PTD) is designed to enable those who cannot repay their debts a way to establish, a monthly repayment schedule based on what the debtor can afford to pay. The Protected Trust Deed (PTD) will last for a specified period, usually three years. When the specified term of the arrangement comes to an end, any remaining debts are written off. This is only available for residents of Scotland

Bankruptcy

Bankruptcy is not for the faint-hearted. It requires serious consideration and should be the last resort, and then only if you are unable to get an IVA or an alternative debt solution. You may file for bankruptcy if you are unable to meet all the repayments on your loans and other responsibilities. Most creditors would prefer you to find out what alternatives you have, as they would not gain much from your filing for bankruptcy.