Debt is a horrible thing to have hanging over you. Even a small amount of debt can make you feel as though you are not free, like you are trapped and that your life has just become about trying to pay it back. And if you have much more that you owe, then it just gets more and more worrying, especially if you owe to many different lenders at once. However, it is always possible to be rid of debt if you want to be, and as long as you have thought about how you are going to do it. In this article, we are going to take a look at some of the best solutions you might want to consider if you are struggling with debt in your life.
One of the most common means by which someone improves their debt is by consolidating them into one. If you owe a number of different lenders and they each have their demands, this is a way of making sure that they get their money, and so stop making those demands, but importantly stop charging you several interest rates too. By putting it all together into one lump sum, you can simply pay off that one month by month until it is gone – all under the one interest rate. Be sure to research a lender for consolidation who is trustworthy and honourable. As long as you do find one, this can be a great way to sort out your debts much faster.
If you can’t or don’t want to go down that route, and you are really struggling to be able to pay your debts off, then you might want to think about looking into an Individual Voluntary Agreement (IVA). This is where you make an agreement with your creditors in which you can deal with your debt through a series of affordable payments. It freezes any interest there might be and ensures that you pay back over a set period of time, meaning that both parties are happy. An IVA can be a very useful way of paying off debt if you are only able to pay off your interest every month at the moment, and it’s an option that is well worth considering.
If you are in a really bad way and you are certain that you won’t be able to do anything about your debt, then you might instead be looking at bankruptcy. This is something that you only ever want to do if you are in a really bad situation and you have no other choices, but it is nonetheless an option that you need to be aware of, just in case you might ever have to use it. Bankruptcy is a form of insolvency which you have to claim for officially, but doing so does write off any debt that you might have. It is often then a long way back to get on your feet after, so don’t do this lightly.
Thanks for stopping by today, I hope you’ve enjoyed this post.