The Amateurs vs. the Professionals in Debt Handling

Most often with our sense of pride and creditability, being uncertain when it comes to debts tells us we can get ourselves out of this mess. The debtors are the amateurs. Most of us are great at finances as long as the money is coming in and it is just a matter of writing a check. The problem of money management comes in when the money stops coming it at least to a point, but the bills just keep on coming.

This is where a debt advisor being the Professional can step in and advise us how to get things back on track again. Chances are he may determine if Individual Voluntary Arrangements is the best solution. In many cases it is but not in all cases. That doesn’t mean there isn’t any hope for you if IVA’s are not the solution. There are most likely other options that the Debt advisor can suggest for you. Perhaps it may be debt consolidation.

To begin with, if your debt load is less than £15,000 you do not need an IVA. In this case, there are other options. For those that owe in excess of £15,000 and cannot keep up with payments then IVA may be an option provided they are in a position to be able to make smaller payments within a determined period. Usually the time limit is five years.

Individuals with less than £15,000 often have money coming in but the interest rates on their bills are so high that in turn their monthly payments are too high as well. They are not able to make the monthly payments and the interest just keeps accruing. This is where debt consolidation may be a good option. A new loan can be acquired at a lower interest rate, which means lower monthly payments, which now becomes affordable.