We all worry about money, and falling into problem debt can be very common, but this can become much worse in the lead up to Christmas and it can manifest itself into a serious debt problem by January. Whilst Christmas is a time to be jolly for some, for others it can be an extremely difficult period as they substitute paying their credit card bills and loan repayments for expensive gifts, gluttonous food, and the latest fashion items.
If this sounds familiar and you want 2021 to truly be a Happy New Year, we’d recommend that you seek help with your debts now, especially if you are already worrying about the financial hangover of Christmas. You don’t need the clock to strike midnight on 31st December to start your New Year’s resolution – act now and get ahead of the thousands of people who will look for help with their debts in the new year.
What help can I get for my debt problems?
There are many financial solutions available to people who are need help with their debts, so it’s important that you find a solution that will be best suited to you and your circumstances. Whether you need a short-term financial solution to help with the Christmas debt burden, or if you need a long-term plan to steady your financial ship, there will be help out there for you.
Before starting your journey to debt freedom, it’s important to know about your options; here’s a quick summary to give you a little insight to each solution:
Debt Management Plan (DMP) – A debt management plan is an informal and flexible solution that allows you to pay back an affordable amount each month until your debt is paid off. For more information, click here.
Individual Voluntary Arrangement (IVA) – An IVA is a formal debt solution which works similarly to a DMP: you will make monthly repayments, but you’ll have slightly less flexibility. The IVA will last a specific period of time (usually 5-6 years) and any outstanding debt is written off. Want further information on an IVA? Click here.
Debt Relief Order (DRO) – If you have a low debt level, minimal assets and a small amount of money left over to pay your debts each month, you could be eligible for a DRO. You’ll make a payment of £90 for your application to be reviewed and your debts will be cleared after 1 year (if successful). You’ll find further details here.
Bankruptcy – It’s a stigmatised term, but it may be the best option for you if you cannot afford to repay your debts. Bankruptcy is a formal insolvency procedure and there is no limit on the level of debt you must have in order to apply. See here for further details.
Financial Solutions for Scottish Residents – There are different solutions available for Scottish residents. Find out about them here.
If you’re interested in taking the first step, we’d suggest obtaining information on all of your debts, as well as your monthly income and spending figures, then head over to our Online Debt Advice Tool to see which solution will be most beneficial for you. If you want to speak to an expert advisor, call us on 01925 599400. Remember, seeking help with your debts can be a daunting task, but companies like Angel Advance are here to provide support and advice to people who need stability with the finances.
If you don’t seek help now, your debt could be for life, not just for Christmas.