Debt Solutions – how to choose your debt option

Debtors currently have a number of options to deal with their debts. The options are Debt Management plans, IVA’s, Bankruptcy and the newly introduced Debt Relief Order.

Does this make it easier? Of course not! Once a debtor has explored the options they want to make an informed decision as to which one is best for them. When the faced with pressures of creditors and debt collectors it no surprise that most will choose a debt management plan, even where an IVA or Bankruptcy may have been the more appropriate solution.

Untangling all the information can be difficult even for the more savvy individual but then the debtor is faced with another decision. Who to choose as a provider?

Always choose a company that has a licence to trade and has the necessary credentials to give advice, such as R3, IPA, Insolvency Service, Office of Fair trading etc.

Explore all your options and do not be afraid to ask plenty of questions and challenge why debt management would be better than bankruptcy or an IVA.