There are many people these days that have huge amounts of debt. This not only impacts on their financial situation but also their general and mental health, relationships, work, and quality of life. For those that are struggling with their debts, trying to stay afloat financially can be difficult. Many end up either without enough cash for essential day to day costs or without enough money to keep up with their debt repayments, which can lead to other issues such as court action, fines, and added interest.
This is why you need to ensure you take action to sort things out if you are heavily in debt and struggling to manage. Many people simple bury their head in the sand, which then leads to even bigger problems. By taking swift action and facing up to your financial problems, you can get back on track and relieve the massive amounts of stress that can come with debt problems.
Some of the Solutions to Consider
There are various solutions you can consider if you are heavily in debt and struggling to keep up with repayments. One of the things you may be able to consider is a debt management plan, which is administered by debt experts. With this sort of plan, your finances are assessed and you then pay an affordable monthly amount to the debt agency. This is then disbursed pro rata to your various creditors and often interest on the debt is frozen, which makes it easier for you to get the debts cleared over time.
Another solution is an IVA or Individual Voluntary Arrangement. Again, this is a solution that is delivered by debt professionals and you pay a set amount each month based on your affordability. This is then disbursed to your creditors by the debt agency and your make the repayments for a set period of time. Once that time period elapses, the remainder of the debt is written off by the creditors leaving you debt free once again. For many, this is a viable alternative to bankruptcy but you need to ensure you meet the necessary criteria for this debt solution.
Some people decide to contact their own creditors and come to an informal arrangement, which is another possible solution. With this, you contact each of your creditors and explain your situation. Provide them with a snapshot of your monthly finances so they know what is going on. In most cases, creditors will agree to a solution where you can refinance the debt to lower the repayments or simply make lower payments for a period of time until you sort out your financial situation. It will also help to avoid court action and letters as well as helping to ensure further costs are not added to your debts.
All of these are viable solutions for those experiencing problems due to high debt levels. You should make sure you look at the requirements for each of these solutions so you can determine which one is right for you.
