Do you want to get out of debt? Debt advice and help is available for people who are struggling to pay for general living expenses such as a mortgage, rent and household bills. If you are in debt and are struggling with living costs, the main thing is to realise you are not alone and that advice and help is available.
Get Out Of Debt (Unsecured)
Unsecured debt is a form of debt that is not secured against an asset. Examples include credit cards, personal loans, bank overdrafts and store cards.
If you have unsecured debts, your creditor does not claim the goods purchased with the credit, even if you have failed to keep up your repayments. However, your creditors do have a right to pursue you for the money owed.
For example, if you purchased a car with a personal loan and then were unable to keep up the repayments for the loan, the creditor cannot pursue you to get possession of the car. They can however press you for the monthly repayments of the loan, or even reduced monthly payments. If you cannot fulfill these they may pursue you for Bankruptcy. However, there are solutions available for those who cannot manage their unsecured debts, such as IVAs or Debt Managment.
Think You Might Need Unsecured Debt Advice?
If your debt has built up to a level where your debt repayments are making it difficult or impossible for you to pay your living costs, then we can help.
Get Out Of Debt (Secured)
A Secured Debt (Secured Loan) occurs when a borrower takes out a loan and secures it against some sort of asset, such as a car or property. This makes the debt a secured debt to the creditor (the loan provider).
In the event of defaulting on payments of a secured loan, the creditor can take possession of the secured asset (e.g. house or car) as payment. They may even sell the asset in order to satisfy the debt owed.
Examples of Secured debts are mortgages, secured loans on property, (sometimes known as second charges) or a Hire Purchase Agreement.
Think You Might Need Secured Debt Advice?
If your debt has built up to a level where your debt repayments are making it difficult or impossible for you to pay your living costs, then we may be able to help you.
Types Of Debt Solutions
If you want to get out of debt and need some form of debt solution, it will help to know what your main options are (please click on a link to learn more):
- Debt Management Plan – this is where a debt management company can informally negotiate with your creditors to reduce your payments, which frees up income for you to pay your living expenses. Interest on your debts is often frozen where possible, meaning your payments will be reducing the balance of the debts and not servicing interest
- IVA – an Individual Voluntary Arrangement is a formal debt solution introduced in 1986 as government legislation, which allows an individual or a business to avoid the repercussions of bankruptcy. It enables you to pay back a only portion of the total debts that you owe, based on what you can realistically afford. The rest of the debt is written off on completion of the IVA. During an IVA, both you and your creditors are bound by its terms.
- Bankruptcy is a legal process that you can enter into when you cannot pay your debts. It’s usually chosen as a last resort, but for some can be their only means of a new start
- Debt Consolidation Loans – if you have enough money left over after paying your priority creditors and your essential expenses, you could think about taking out a consolidation loan to pay off your non-priority debts. The advantage of a consolidation loan is twofold: it makes debt easier to manage by making one payment instead of several and; the interest rate is usually less than the combined rates of existing debts
- Other less-known possible solutions may also be available, such as debt relief orders, administration orders, and full and final settlements. You can find out more about these in our debt blogs
