Most people encounter dept in their life due to the harsh cost of living. Dept can become a barrier to obtaining new credit or loan. And prevent you from owning a dream car or home. Despite all that, you will get constant phone calls, text messages, and emails from creditors, which will affect your physical and emotional well-being.
Having a Dept Solution is the best way to approach your debt problems that you’re having a hard time paying back. Under such instances, you make an arrangement with My Dept Plan on which they will find the best alternative on how to repay your loans to your creditors. You also get protection from the hustle of creditors and growing interest. Here are debt solutions that you can choose from and how they work.
Individual Voluntary Arrangement (IVA)
Going through financial problems and not being able to share them with anyone is the most common thing many faces. That is why many opt to take up loans and cannot repay. However, when you apply for an IVA plan and qualify, you can pay some money to your creditors, not necessarily the full amount they want. And you will have enough to pay your bills and cater to your needs.
When your IVA plan commences, all your charges and interests will be frozen, and all the debts you can no longer afford will be written off. Your IVA plan will take place if 75% of your creditors agree to it, and it will also apply to those who don’t.
Debt Management Plan (DPM)
Those who opt not to have Individual Voluntary Arrangement as their debt solution. DPM may be the best option.
DPM allows you to pay all your debt at a rate you can afford with the help of My Debt Plan, where you will get help and guidance on how to execute the plan. You will also be able to sort out all your bills and other costs you need.
Debt Relief Order (DRO)
There are varying circumstances that may prevent you from clearing your loans. One of these is if you have no other means of paying your creditors back. In such an incidence, you may qualify for a Direct Relief Order.
DRO is an alternative for bankruptcy where it legally allows you not to pay your creditors for 12 months, and when the period ends and your situation has not changed. All your debts will be written off. That means you will not have to pay them. To determine if you qualify, DRO is determined by looking at your income with your everyday needs and expenses.
Bankruptcy
Bankruptcy is usually considered a last resort when you have no other means to pay off your creditors. Bankruptcy allows you to have a fresh start on your financial situation. When you apply for bankruptcy, anything of value you own, such as your car and house, will be sold, and money is shared among creditors.
You can apply to declare yourself bankrupt when you cannot pay off your creditors. But, on other instances your creditors will apply to declare you bankrupt if owe them a minimum of £5000 and unable to repay. When declared bankrupt, your creditors can no longer reach out to you. A bankruptcy period usually lasts for a year, after which all debts are written off.
Trust Deed
Being from Scotland, Trust Deed may be the best option to pay off your debt at the rate you can afford without the creditor’s stress and pressure. If you qualify for a trust deed, My Dept Plan will help you write off the debt you can no longer afford, and your charges and interests will be frozen, helping you focus on paying with your new agreement stress-free.
Dept Arrangement Scheme (DAS)
With Dept Arrangement Scheme for Scottish residents to help them repay their debt. DAS protects you from creditors taking action against you and extending your debt repayment period. DAS will also freeze all the interests and charges.
They are also prevented from taking legal action against you under DAS for as long as you stick to the payment plan as agreed. You are also allowed to take a six-month payment break if you have problems paying back your loan due to a reduction in income.
Please find the best Dept Solution for you by reaching out to My Dept Plan experts, who will guide you on the best options by looking at your income and expenditures.