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The different debt solutions

Dealing with a debt problem is something you will probably do just once in a lifetime. The debt solutions are new to almost everyone when they first seek debt advice. You also have to contend with a lot of industry jargon.

This page will help you to understand all of the possible solutions available to you, so that your decision making process is both easier and better informed.

There are just three key things we need to consider when deciding on the best debt solution for your own particular circumstances:

1. How much do you owe on credit cards and unsecured loans?
2. How much do you earn each month?
3. How much do you need to live on?

The first two of these are simple statements of fact. The third depends on what you tell us about your situation. ClearStart will always give you honest debt advice on whether or not your lenders will consider your requested living costs to be reasonable. Lenders use something called the "common financial statement" to work out reasonable living costs based upon average family sizes.

Once we have the answers to each of the three questions above, we can quickly tell you what debt solutions are available to you to help you become debt free and to get started right away.

Call us on 0800 988 9345 for impartial debt solution advice

or complete our debt solution application form.

We might suggest an Individual Voluntary Arrangement (IVA), a Debt Management Plan or simply some fresh ideas on how to improve your situation and get out of debt problem. In each case we'll explain all of your choices and how long each debt solution will take, as well as what happens to any monthly contributions you need to make.

You can also find out more about different solutions to clear your debts by going to our product suitability page or by following one of the debt solution links below:

Individual Voluntary Arrangement (IVA)

For people facing serious debt issues, the Individual Voluntary Arrangement (IVA) is often an effective solution because it eliminates debt, rather than just helping you to live with it. IVAs are provided on identical terms by all debt solution providers, including charities.

Debt Management Plans

A well run Debt Management Plan can work for many people, as long as the payments are set at a sensible level. ClearStart can provide you with the best value debt management plan in the UK.

Bankruptcy

This is a last resort, with far more serious consequences for your future than an IVA or Debt Management Plan. Wherever possible, ClearStart will try to ensure a successful debt solution to get you out of debt problems instead of bankruptcy.

Debt Relief Orders (DRO)

A new government initiative, Debt Relief Orders (DROs) are designed as a simplified form of bankruptcy for people with smaller debts. To qualify for Debt Relief Orders you must owe less than £15,000 and have less than £50 of disposable income per month.

Remortgaging

This solution is similar to a consolidation loan but it is secured against your house. If you can obtain access to a secured loan and comfortably afford the repayments then this is a good option for you to get out of the debt problems, but remember that your home will be at risk if you cannot keep up with repayments.

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

or complete our debt solution 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

Three steps to a better future

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