There is the debt management plan, the IVA and the debt consolidation loan that you can use to get out of debt. A consolidation loan is a low interest loan that you use to pay off all of your unsecured debt. The interest is very low making the payments very affordable. Another method, the debt management plan, works by getting interest rates reduced. With reduced interest rates you will have lower payments each month. In most cases it is best to use a debt management company to get you set up on this plan. The IVA is a binding arrangement that is made between you and your creditors. An insolvency practitioner will help you to see what you can afford to pay each month. Then the creditors vote on it. When you get enough votes the arrangement will take affect allowing you to pay back a small portion of what you owe.
| January 28th, 2012 | Posted in Debt Consolidation |