There are a number of options avalable to people who may be struggling with debt. Here at Inter Financial we have broken those options down so you can best decide which one is right for you.

An Individual Voluntary Arrangement or IVA is a legally binding agreement that is negotiated with your creditors on your behalf, which can reduce the amount of money that you pay back. Once agreed all interest payments will be frozen, and your monthly payments can be reduced significantly. To qualify you will need to be employed or have a regular income (must have at least £200 a month available for payment into the IVA), your total unsecured debt must be a minimum of £15,000 (no maximum) with at least 3 lines of credit and 2 creditors (i.e. different lenders or credit card companies).

A debt management programme is acheivable payment plan negotiated by an expert at a debt management company. They will help you to calculate the amount you can afford to pay each month. You will pay the debt management company and they will pay the lenders, the lenders will also deal directly with the debt management company, which means no more threatening letters. To Qualify you will need to owe at least £5,000 in unsecured debt shared between 3 different creditors, and have at least £100 disposable income per month.

For those who have equity in their home another alternative is to take out a debt consolidation loan. Consolidating all your expensive store and credit card debt into one cheaper rate loan can significantly reduce your monthly commitments. You should always make sure that you destroy credit cards once you have cleared them.