If you are in serious financial trouble there are five main debt solutions for you. These are:
- Wipe out or compromise your consumer credit debt, including credit card debt.
- To enter into an Individual Voluntary Arrangement with your creditors, which means you agree to pay them a portion (or part) of your total debt over time (usually five years). This agreement is supervised by an Insolvency Practitioner and sanctioned (agreed) by the courts.
- To be declared bankrupt by the court either through creditor’s action or your own action.
- To enter into a Debt Management Plan with your creditors, which means you agree to pay your debts in full, through lower monthly instalments but over a longer period. DMPs are not legally binding agreements and are called ‘informal arrangements’.
- To refinance or consolidate your loans.