Debt

Being in debt can be a torrid time, the feeling of drowning in mortgage arrears and other bills are horrible things for anyone to have to go through. Finding a way out of debt on your own can be really difficult, but debt solutions can help either write off debts, consolidate debts, or provide you with a path to get out of your financial difficulty.  By taking advantage of the debt solutions available to you, you can lead a happy, healthy, and financially stable life in the future.

What debt solutions are available?

Rite Financial can help you find out more about the following debt solutions and establish whether they are suitable for you:

• Trust Deeds
• Debt Management Plans
• IVA
• Sequestration
• Bankruptcy
• Debt Consolidation.

Which debt solution is right for me?

Everyone’s personal circumstances are different, so it is important to know and understand how these debt solutions could affect your life.  All debt solutions have different criteria, advantages and disadvantages. By obtaining expert advice you could find a solution to suit you and find a way to move on from your gets and get on with living your life.

Trust Deeds are only available in Scotland. This voluntary arrangement prevents your creditors from contacting you directly, and can freeze any further interest and charges.

IVAs, or Individual Voluntary Arrangements, are the English & Welsh equivalent of a Trust Deed. If your creditors agree to an IVA it can write off a percentage of your existing debt.

Debt Management Plans, or DMPs, are an arrangement between you and your creditors, where the DMP acts as a middle man. You make one monthly payment to the DMP, which is then distributed to your creditors on your behalf.

Sequestration is a legal term for becoming insolvent in Scotland. This is one of the most extreme ways to achieve financial freedom and should only ever be considered after every other option has been exhausted.

Bankruptcy is one way to clear debts in England and Wales. In the event that you are unable to meet your monthly debt repayments you could consider becoming bankrupt but this will have a long term impact on your credit rating.

Debt Consolidation does not write off any debts, but allows you to repay them all in one go by taking out a new loan of the same value. By repaying all of these debts you could benefit from lower monthly payments.

If you have debts weighing on your shoulders and are looking for a way out, contact Rite Financial who can discuss all of your options. You might even find that your debt isn’t as bad as you thought, and with a little extra care when managing your finances could meet your repayments. If your bills are higher than your income and the value of your assets, you may have to take further action. Discuss your options with Rite Financial to ensure that you choose the right way out of debt.