Abbot & Edwards-The Debt Management Experts, Give Simple Solid Debt Advice

LONDON, ENGLAND, April 30, 2011 (Press-News.org) Abbot & Edwards, the debt management experts have put together some good practical debt advice tips for you.

There are various options for dealing with debts but each case is individual and needs to be assessed accordingly. Below our debt management specialists have summarised some of the main options.

1. Bankruptcy: this is the conventional way of getting out of huge debts. It ends after one year, but the individual may lose all his assets including his house to make certain payment to the creditors.

2. Individual voluntary arrangement (IVA): It is a kind of deal between your creditors and you which is looked after by the insolvency professional. In this deal, there are less chances of losing the home, less chances of disgrace but you have to pay a part of your debts in one payment or over a period of time as agreed.

3. Debt Relief Orders: It came in to being in April 2009 and enables the consumers who have debts less than 15,000 pounds and surplus income or minimal assets to write off their debts without bankruptcy.

Next we will look in more detail at the two options instead of filing for bankruptcy.

Individual voluntary arrangement (IVA):

An individual voluntary arrangement (IVA) or bankruptcy usually lasts between one and five years and at the end, any unpaid outstanding debts is written off. A debt management, on the other hand, lasts for long time, but there is no surety that any amount of the debt will be written off.

These are informal plans and people have to understand that the creditors can change them at any time which may include an increase in the amount of monthly payment.

These informal arrangements do not tackle the core problem and are only able to deal with the debt. However, most of the people are now opting to these debt management arrangements with various available remortgage options as a way to deal with debts to avail short term relief.

Debt Relief Orders (DROs) are an option relevant in particular situations.

They came in to existence in the year 2009 with the aim of helping those people who have debts of 15,000 pounds or less. To be eligible for a debt relief order ( http://debtrelieforder.org.uk ) (DRO), an individual should not have a gross total property value of more than 300 pounds, a vehicle valuing more than 1,000 pounds and disposable income of more than 50 pounds per month.

UK Bankruptcy Age Is Falling

Every person has its own way of dealing with the debt with the use of any of the options but it is recommended that people battling with debt must deal with the debts now.

In UK, the average age of man who files for bankruptcy is now falling. In 2005, the average age of filing for bankruptcy was 41, now it is believed to be 38.

This implies that if a person enters debt management arrangement, he will not come out of debt until the age of 50 and he may have to repay the debt to the creditors. The biggest concern is that if the debts are not dealt with now, there will be a large population of people who won't have time to rebuild their financial future in their life and hence will not be in a position to provide for their old age.

This added with the huge stress of living with debt are why the team at Abbot & Edwards advise you to act quickly and seek advice.

If you need free advice to see if one of these solutions such as IVAs could be an option for you, call 0800 533 5444 now.