Debt Awareness Week: What to do if you’re struggling with debt
By Amber Tennant
According to the Money Advice Service, there are now over 8 million people in the UK living with problem debts.*
The stress that money worries create can make many people feel hopeless, but it’s important to remain positive and remember that there is no debt problem that cannot be fixed with careful planning and consistency. Although there may not be an easy or quick fix, there’s always a way out of debt and the earlier you acknowledge your financial situation the easier it will be to deal with it.
Find out about the different ways to deal with debts if you are falling behind with day-to-day bills, loan and credit card repayments or other financial commitments such as your rent or mortgage.
- Debt Management Plan (DMP)
- Debt Relief Order (DRO)
- Individual Voluntary Arrangement (IVA)
- Administration Order
- Offer in full or final settlement* – if you have a lump sum that would cover part of your debts, you may be able to ask your creditors to accept a part payment and write off the rest of your debts.
- Writing off your debts* – If you have no available income, savings or assets and you are able to show your creditors that your circumstances are unlikely to improve in future (for example, if you’re severely ill) in exceptional circumstances you may be able to write off your debts.
*Speak to a debt advisor to see if this solution could work for you.
Make sure you access free debt advice before you make a decision. It’s always a good idea to talk things through with an experienced debt advisor, as they will be able to give you impartial guidance about which option is best for your personal circumstances. Find out where you can get free debt advice