Consolidation loans, IVAs and bankruptcy? unbiased, free advice on all aspects of debt.

Consolidation loans.
Before you take out a consolidation loan, be aware that this is actually the correct solution for only around 1% of those in debt.

Consolidating debts usually involves borrowing more money in hope of managing the existing debt. Although this appears to solve immediate problems, more often than not it increases debt and simply postpones the problem until a later date. With a consolidation loan, you will always owe more than you did before and the length of time you remain in debt will be extended.

IVA
An IVA is not necessarily the correct solution for your particular circumstances, though many debt advice agencies will "shoehorn" debtors into one at the first opportunity. Why? Because that is most profitable for THEM believe it or not. We do, it has to be admitted, have a "bee in our bonnet" about this issue, it being an ethical one. The last thing a debtor needs is to be SOLD a solution like an IVA, if it's not the correct solution for a particular debt problem. An IVA is no guarantee against bankruptcy - itself not a good situation to be in with its own repercussions, see below.

That's not to say that an IVA is the WRONG solution, only that it is one of many solutions which we can advise on. For some, i.e. those with over £15,000 in debt and at least 4 creditors, an IVA can in fact be the best solution.

At the end of the day, we will advise debtors as to the options and leave the choice to them.

We'll also make a promise to you: "We'll never offer a solution to you based on the profit WE can make from it."

Bankruptcy.
Bankruptcy is not always the best answer either. Both IVA and bankruptcy can have serious repercussions both at the time and later. However, in certain circumstances and for a small percentage of cases, one or the other may actually be the best solution. You may need to take professional advice to ascertain which is best.

Debt Management.
Debt management companies, in the main, do just that - manage your debt for you - for a fee. This doesn't make your problem any better, it merely spreads it out over a longer period and in the long run, with more to pay out in removing the increased amount of debt - plus their management fee.

Alternatives.
In many cases, we will be able to advise you how to manage your own debt more effectively and without paying us any fee whatsoever. For instance, if you're running your bank account in constant overdraft, then you're already spending far more for everything you purchase than you could be. There are other solutions, which will prevent such unecessary overspending, our advice will be invaluable in this regard.

Take professional, ethical advice before you consider actioning either an IVA or declaring yourself bankrupt, taking out a consolidation loan or other methods.

To see at a glance the solutions available for your specific situation, click here.