One of your debt solutions is to take out more loans. This is the easy option – there are many lenders out there who will offer any size unsecured loan, which they say is the answer to your debt problems. It isn’t – taking out more loans to cover debt is not a good idea, as it will lead to higher rates, more fees and even more pressure. Debt solutions need to be made with the long-term in mind and taking out a bad debt to pay for more bad debts is not going to get you out of trouble.
IVAs and Bankruptcy
If your debt problems are extreme, you can opt for an Individual Voluntary Arrangement, or an IVA. This is an arrangement between your creditors to agree for you to pay back a reduced debt. It is debt solutions of a sorts but it is not the long-term answer – an IVA will cripple you financiallly and leave you out in the cold for years to come. You will still have bills to pay but you will not be able to ask lenders for debt solutions. An IVA has to be a desperate measure when all else fails. Of course, succumbing to debt in the form of bankruptcy is even worse – it’s financial suicide and must be avoided at all costs. There are always better debt solutions.
Using your home
The most sensible debt solutions are using your home as a way of paying off and consolidating your debt. Your home is your greatest asset and one that is worth more and more all the time – and there is always money to be had in your property. Using a secured loan from the house’s equity or using a new mortgage will allow you to pay off your debt and pay into your home. With these debt solutions you can be sure that your home is safe and you can also plan for the future.
Listening to advice
Debt solutions can come from many people, but a financial adviser will always have the right answers. Professional and honest, a financial adviser can give you real debt solutions that will really work. If it’s a secured loan, a remortgage or even an IVA you can be sure that a financial adviser’s choices will work for you.