One of the things that people who are facing being in debt might want to do is to consider taking out an IVA. IVA stands for Independent Voluntary Agreement, and is a legally binding contract between the person in debt and their creditors.

 It means that the debtor will pay off a fixed, affordable amount every month, which all of their creditors will then get a cut of. An IVA is a good programme for debt management, because it means that those in debts will be able to concentrate on paying their debts off, rather than having to worry about threats from creditors. An IVA runs for five years, and if at the end of this period some of the debt remains, the rest of the money will be written off. An IVA has to be applied for, and is available to people who have debts of more than £15.00 to a certain number of creditors.

There are other options for debt management, which have more negative connotations than an IVA. One of these is bankruptcy, which like an IVA is a form of insolvency. A lot of people would rather avoid this route though, as it can potentially harm future business dealings. Another option is to remortgage your house, a solution which is chosen by a large number of people who are struggling with debt.

 One of the most successful debt management programmes is debt consolidation, which involves putting all your debts together into one monthly outgoing. The amount coming out of the debtor’s bank will then be the same every month, allowing them to plan ahead and at the same time ensuring that the demands for money from creditors are halted. Debt consolidation has proved popular for a very large number of people, and has helped them to get out of debt in a stress free way.