Being in debt is something few people feel completely comfortable with. You can grow used to it, but given the choice, most of us would live debt-free. Something that is actually easier to achieve than you may think. There are lots of different approaches you can take to getting yourself out of crippling debt. We are not trained financial advisors, so this is just an overview of some of the easiest to access options. For some of the approaches below, you will need to seek independent financial advice before committing to anything. But, they are all potentially all viable approaches.
Individual Voluntary Arrangements (IVAs)
For people who have extreme debts, IVAs can work. If you visit site you can find out everything you need to know about them.
This is a legally binding agreement, which usually lasts between 5 and 6 years. Many people find paying off their debts in this way to be easier. This is mostly because instead of managing multiple debts they only have to worry about making one payment to cover them all, each month.
Scotland runs a slightly different IVA scheme. So, if you live there be sure that the advice you are getting does actually refer to the Scottish system.
Debt management plans (DMPs)
It may be possible to renegotiate your debt with your creditors. Often, you can make arrangements to repay your debt over a longer period of time.
Under this system each month, you make a single payment to a debt management company. They then share that amongst your creditors.
Becoming bankrupt is a very serious step. It can have a major impact on your life. So, it is especially important that you seek independent financial advice before you go down this path.
Consider managing your debt yourself
All of the above suggestions can work. But, understandably, the companies that provide these services charge for their work. So, it is well worth taking a look at managing your debt more yourself. Provided you are not deeply in debt and have worked out that you have the funds to actually pay back your creditors things can work out.
A lot of people who have struggled in the past to clear their debts are having some success using the debt snowball or debt avalanche methods.
They are very similar methods. But, you can find out about how the differences by reading this article, which will help you to choose the one that is likely to work best for you.
If you do decide to take this approach downloading the appropriate app will make things much easier for you. The simpler you make things the more likely it is that you will successfully clear your debts, in the long run.
Staying out of debt
Once you have cleared your debt, it is wise to make some changes so that you do not end up in the same situation, in a few years. You don’t have to live like a monk, just be a bit more careful about how much you spend.