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Frequently asked questions about debt solutions

Guide to debt solutions

Hello and welcome to ClearStart's debt advice service where today we've got a short guide on all the main debt solutions available to those struggling with debt problems.

The best debt solution always depends on individual circumstances and one of the main factors to consider is exactly how much you owe.

If you owe between £3000 and £15,000 then a Debt Management Plan (DMP) may well be an excellent solution.

By asking your creditors to reduce or freeze interest and to accept a lower monthly payment from you, a Debt Management Plan can take the pressure off and let you get back on your feet.

For those that owe over £15,000 and have around £200 of disposable income available each month, then an IVA or Individual Voluntary Arrangement may be the most suitable debt solution.

An IVA replaces all your current debt repayments with one affordable monthly payment for 5 years – at which point you become completely debt free.

For people living in Scotland a Protected Trust Deed is similar to an IVA and provides many of the same benefits.

For those with debts under £15,000, but with disposable income of less than £50 a month and savings of less than £300, then a Debt Relief Order (DRO) can be a extremely good option.

Of all the solutions to debt problems, bankruptcy is by far the most drastic and while sometimes appropriate, it should never be considered lightly, as assets such as cars and houses can be taken away.

To get more information on the full range of debt solutions, contact ClearStart now for free, impartial and immediate advice.

Remember we're here to help you make the right debt management decisions.

What is the best debt solution for me?

This would depend largely on the nature and amount of your debt, and your current financial circumstances. For example, you can opt for an IVA if your unsecured debts are more than £15,000 and you have a disposable income of £200 for monthly repayments. An IVA usually runs for 5 years while debt management plans can take an average of 25 years. Bankruptcy, on the other hand, normally requires you to make payments for between 12 and 24 months.

Do I need to provide full details of all my for debt advice?

Though not necessary, it is advisable to provide the necessary information when seeking debt advice. The expert will advise on the best option based on facts such as the amount of debt, the type of debt, arrears and your current income etc.

Can I seek debt advice for all my sources of debt?

Yes. Whether your debts are from loans, credit cards, store cards, unpaid bills or other agreements, we can provide you with free, impartial and honest debt advice on the best debt solution for you.

To understand the choices that you have, you must seek debt advice and tell the experts what you owe, how much you earn each month and how much you need to live on. Based on the information provided our expert advisors would advise you on whether an IVA best suits your individual situation or if debt management solution might be better.

Call us on 0800 988 9345 to get impartial advice for debt solutions.

or complete our online application form.

Further reading:
Debt | Debt Advice | Debt Solutions | Debt Solutions FAQs | Debt Management Plans | Individual Voluntary Arrangement (IVA) | Bankruptcy | Insolvency | Debt Relief Orders (DRO) | County Court Administration Orders