Debt FAQs

1. How does debt management affect my credit rating?
If you are currently facing a debt problem, it is likely that your credit rating has already been badly affected. With a suitable debt management plan, you can sort out your debt problem. You may get a repayment plan that you can execute with your current financial capability. So, you can clear the monthly instalments regularly which, in turn, will better your credit rating.

2. How Debt Consolidation can help me?
Debt Consolidation is the way of merging multiple debts into one package. It may extend your repayment term and provide you with affordable monthly repayment instalments. So, you can deal with your debts comfortably. It also gives respite from the hassles of dealing with more than one lender and multiple debts.

3. How many types of Debt Solutions are there?
There are various type debt solutions offered by debt help agencies. IVA, Debt Management Plan, Debt consolidation, Bankruptcy. You can also take a secured loan, an unsecured loan or go for re-mortgage to consolidate your multiple debts into one package thereby to make debt management easy.

4. How to get the most suitable Debt Help?
You can avail the most suitable debt help plan from various sources. The best is to research well and understand your need properly. Then it is necessary to search out for best option by exploring the market and comparing the packages offered by various agencies.  

5. What is IVA?
IVA stands for Individual Voluntary Arrangement. It is a legal process for UK residents who have serious debt problems. It is arranged by insolvency practitioners who negotiate the terms of the agreement with creditors. It is a viable alternative to bankruptcy without the stigma and legal restrictions that are associated with going bankrupt.