Product Description
There are numerous debt solutions available today, each of which has its own qualifying criteria. In order of severity the main solutions include debt management plans, Individual Voluntary Agreements and bankruptcy. Some of the solutions will have an impact on your credit history and so should only be entered into if there is no other choice. Small debt problems can often be sorted by talking to your creditors however major debts will need a more severe solution.

Main Players
For debt management plans the well known names include Payplan, Baines & Ernst, Chiltern and Gregory Pennington. More severe debt problems will need an IVA however and the top names for these include Debt Free Direct, Cleardebt and Debt Matters. There are hundreds of insolvency practitioners online however these three tend to have the best reviews and customer comments.

Pros of Debt Solutions

• The various debt solutions can help you to clear severe debt over a number of years and start afresh totally debt free.
• Debt management plans and IVAs help a lot of people to avoid bankruptcy.
• The debt solutions mentioned above allow you to pay what you can towards your debts without leaving you on the breadline each month. This means most people are better off than when they were trying to pay each individual debt.

Cons of Debt Solutions

• Most of the companies that arrange the various solutions charge quite high fees for their services.
• Debt management plans often result in you paying your debts for many more years than you would have done originally – which means you end up paying a lot more in the long run because of the additional interest.
• All of the debt solutions have qualifying criteria and if you don’t qualify you have to struggle on. This has often led to people accumulating more debt just so they qualify for help.
• Both IVAs and bankruptcy have a big impact on your credit score and they can stay on your file for up to seven years.

Things to Consider when Choosing a Provider
One of the main things to think about before choosing a debt solution provider is whether you really need one. A lot of credit card companies and personal loan providers will grant you payment breaks if you’re struggling so you then have a bit of time to catch up. It is worth talking to your creditors first before doing anything else.

If you have no luck with that road then you’ll need a debt solution company and there are literally hundreds to choose from. Make sure however that you choose one that doesn’t charge additional fees for their services. Payplan is a debt management company that doesn’t charge you a fee each month and so everything you pay them is paid off your debts. Similarly, some of the IVA practitioners take their fees straight from your IVA fund which means your creditors are technically paying them and you’re not. Lastly, make sure that the company you use is fully registered and that they have good feedback from their current clients.

BUYability Summary
The debt solution options available today are very good but it doesn’t mean they’re an easy way out of your debt problems – they all have their drawbacks. Debt management plans can take over 25 years to complete whereas IVAs and bankruptcy can both prevent you from getting any kind of credit again the in the future, and this includes a mortgage. Choose the least severe solution possible and if you can then talk to your creditors and try to work out a solution privately – it’ll be better for you and your credit file in the long run.