Published in Debt Advice Features on Friday, November 19 2004

A quick summary of the available debt options.  More in-depth information is available within our ‘Debt Solutions Guide’ section on all the individual options.

Your way out of debt

A debt advice company can help you to get out of debt by providing free advice on all of the following options:

• IVA (Individual Voluntary Arrangement) - An IVA is an official debt repayment plan that in most cases includes the freezing of interest, reduction in the total amount of debt owing, and legal protection from creditors.
• Consolidation Loan - Usually recommended in cases of moderate debt problem where there is equity in your home, or where you can afford to make equal or higher monthly debt payments than you are currently making.
• Re-mortgage - A remortgage is exactly as the name suggests, taking out a new mortgage and repaying your existing one in order to realise equity and sometimes to reduce monthly debt repayments.
• Bankruptcy - Bankruptcy is a ‘last resort’ solution in cases of a very serious debt problem, and can be brought on by a creditor or can be entered into by making a bankruptcy order yourself.
• Debt Management (or Self Help) - Debt management is an informal process of negotiating with your creditors for the freezing or reduction of interest, or the writing off of part of your debt.