Debt management Wales

If you`re struggling to repay your debts, finding the right debt solution could make a huge difference to your finances. Different debt solutions are designed to help people in different situations - but choosing the wrong debt solution could make it even more difficult to repay your debts.

Here`s a brief guide to three of the most common debt solutions available to people in Wales.

What debt help is available to people in Wales?

Unlike Scotland, debt solutions in Wales do not differ from those offered in England.

Debt consolidation loan

A new loan used to pay off your existing debts, meaning you will only have to repay one debt instead of many. This can make managing your finances a lot simpler.

In addition, many people use their debt consolidation loan to reduce their monthly outgoings. This can be done by spreading the debt repayments out over a longer period of time than the original debts, although this may end up costing you more in total (as you`ll be paying interest for longer).

Debt Management Plan

An informal arrangement with your creditors - asking them to accept lower monthly payments towards your debts, based on how much you can realistically afford.

A debt management plan can be arranged on your own, but as this can take a lot of time and effort, many people prefer to use a debt management company, which can negotiate with creditors on the borrower`s behalf.

IVA (Individual Voluntary Arrangement)

A legally binding agreement in which you will agree to repay a percentage of your debts, based on what you can afford. Your lenders will agree to write off the rest.

An IVA usually lasts for five years. You will make regular monthly payments to your Insolvency Practitioner (IP), who will subsequently distribute the agreed amounts to each of your lenders (as agreed in your initial IVA proposal).

On successful completion of the IVA, you will be legally debt free.

How do I decide which debt solution is right for me?

Choosing the right debt solution can be difficult. Each one is different, and what`s right for one person might not be right for another. Plus, each solution has drawbacks as well as benefits, and understanding them is an important part of choosing which debt solution is right for you.

That`s why you should speak with an expert debt adviser before making any decisions. A debt adviser can explain the pros and cons of each debt solution, and can help you to establish which debt solution best meets your individual needs.

Tags: debt, management, consolidation, wales, debt wales, debt management wales, debt management in wales, debt advice, debt help

Our initial advice on your best financial solution is free. Fees payable when continuing service is provided. Calls may be recorded for training and quality purposes.