Our debt free advisors are on hand to offer you debt advice about any one of our debt free solutions, and their expert guidance could be just what you need to help you decide which debt solution is right for you.

The following gives you the examples of some debt free solutions which you may come across:

• Debt Management Plans: A Debt Management Plan is a debt solution which could be suitable for those struggling with unsecured debts below £12,000. It is an informal creditor agreement where you make one lower monthly payment to your unsecured debt.
• IVA: An IVA (Individual Voluntary Arrangement) is a debt free solution which could be suitable for those struggling with unsecured debts over £12,000. This is a formalised agreement with your creditors where you make reduced monthly payments over a typical 60 month period and any unaffordable debt can be written off.

Therefore it is important to begin understanding the causes of debt; armed with this information you can curb your spending habits and begin to repay your debt and look forward to becoming Debt Free.

You may find that one of your top causes of debt is the result of emotional spending. We are all familiar with the term ‘retail therapy’ which involves spending money to make you feel better about yourself.

But this short-lived rush of happiness could be masking a more sinister debt problem. If you cannot afford the item then resist the urge to spend as many of those who partake in Retail Therapy end up feeling depressed or guilty about their purchase.

Guilt can also be a trigger for overspending, such as parents of a divorce who overspend on their children. Many believe that this overspending happens as the parents feel guilty about the failure of the marriage.

Solving this debt cause:

It is hard to break the behaviour but if you can do this then you can look towards repaying your debt and having a debt free future. All you need to do is make simple changes to your lifestyle.

For example, if you overspend during retail therapy, next time leave your credit cards, debit cards and store cards at home. Just take the amount of cash you need then you won’t be able to overspend and you can use this money to pay off your debts.

Also be aware that there is debt help out there which can make your monthly repayments much more affordable if you are struggling to juggle multiple debts. A Debt Management Plan is an informal agreement between you and your unsecured creditors. A lower monthly payment is negotiated to a level which is affordable. However you need to be aware that it will take you longer to clear your debt as you are making smaller payments.

You may have heard of an IVA (Individual Voluntary Arrangement), government backed legislation which is designed to help you deal with your debt problems.

IVA: Government Legislation

IVAs were introduced as part of the 1986 Insolvency Act, aimed as a viable alternative to bankruptcy. Bankruptcy comes with unavoidable long term implications, such as hindering future job prospects and losing high-value assets which is most commonly the debtor’s home.

Not everyone is suitable for an IVA. Government legislation states that only certain criteria are suitable for an IVA. Typically these are debtors with debts over £12,000 which they are unable to pay.

If you are suitable for an IVA, then there are many benefits for you. You only pay back the debt that you can realistically afford to. This means that you make a reduced monthly payment to your debts over an average of 60 months. Once you have completed your Debt Free IVA, any unpaid debt will be written off.

The IVA is legally binding which means that the creditors cannot chase you for this debt. As soon as your IVA has been accepted, your creditors will not be able to contact you or continue any recovery action against this debt.

IVA’s are a complex legal procedure and can only be proposed by a licensed Insolvency Practitioner. They will draw up a proposal which is affordable to you and also provides your creditors with more of a financial benefit then if you were declared bankrupt. 75% of your creditors, in terms of debt value, must agree to make your IVA legally binding.

You can be Debt Free with the help of an IVA. Government legislation can help you to deal with your debt problems. You should always seek expert advice about the IVA, so that you are aware of any benefits and implications

People who have a lot of debt, both secured and unsecured, may feel as though there is no way out of their debt problems. This is incorrect, with the right debts advice you can look forward to perhaps reducing your monthly payments to your unsecured debt, without having to compromise on your standard of living.

When seeking debts advice it is important that you are aware of your true financial situation. This can often be the scariest part, as you need to sit down and work out how much you owe to each different creditor. The total amount that you get may be worrying, the interest and charges which are added to your debt can quickly add up!

If your debt is more than you imagined then you need to seek debts advice, especially if you are beginning to miss payments to your creditors. All late payment fees will do is increase the amount of debt that you owe, and your new goal should be to become Debt Free.

A way to get debts advice is to search online, there are many different Debt Management companies out there who aim to help you with your debts, but they have not all been created equally! DebtFree would only offer you ethical advice and our debt advisors genuinely want to help you with your debt problems and for our debts advice to help you with your debt.

No matter how much debt you have or how many different creditors you own money to, there is always a debt solution which is right for you! Although you can research online and see what debt solution you think is the right one, you are best getting in contact with a debts advisor.

Debts advice is just a simple phone call away. If you are suitable for a Debt Management Plan or an IVA, then we will deal with your creditors on your behalf as part of our service, so you don’t have to worry about calls or letters. Tell them that we are dealing with your debts on your behalf.

If you are seeking debt help then you need to consider your options. You want free debt help so that you can get your finances in order and try to reduce your outgoings to your debt. Getting free debt help could help you to control your money worries. Debt Free have a number of expert debt advisors who are on hand to offer you free debt help and help you to find a debt solution which is right for your finances.

If you are just looking for advice, we can offer this help for free. Our advisors are on hand to go through your details and help you to find what the right debt solution is for your personal debt circumstances.

Seeking free debt help is not something to worry about as with the current economic climate, more and more people are facing debt and more may have to seek debt help. There are a vast number of debt solutions out there and once you have got free debt help then you can decide which option is right for you.

For example, when you are seeking free debt help you might be told about a Debt Management Plan. This is a way for you to make your debts more affordable. Debt Free will come to an agreement with your creditors so that you can benefit from one low monthly payment. You make this single payment to us and we will distribute it between your creditors. This form of debt help will help to reduce your outgoings to your unsecured debt which should mean that you can meet your other debt commitments, such as a mortgage.

The free debt help which is out there is all dependant on your circumstances. Although the initial debt help will be free, our Debt Management plan does have a monthly charge which will cover the ongoing expense of your plan and dealing with your creditors on your behalf. A debt management plan offers your help as it should benefit your situation and help to make your unsecured debts more affordable to you.

Getting your finances under control is the first step to take when you are on the road to becoming Debt Free from credit card debt. Below gives you a few tips on how you can start your debt free journey, but remember that there are debt solutions out there to help you.

If you qualify and follow the agreed terms, an IVA allows you to become debt free in 60 months. For further information about IVA, Debt Management, Trust Deeds or bankruptcy, please call our team of specialist advisors on today

1: Tackle High APR Credit Card Debt
By tackling the credit card with the highest APR, you should be paying less interest in the long run. The idea of this DebtFree Tip is to reduce your credit card debt as quickly as possible.

A high APR means that you will be paying back a higher level of interest to your creditors on a monthly basis and, chances are, if you have multiple credit cards, each one of these will have a different rate of interest.

2: Balance Transfers
It is important to note that balance transfers do not clear your debt, all you are doing is transferring this debt to another card, the debt is still there and needs to be repaid. However, if you can get your financial planning in order then you may want to consider balance transfers so that you can take advantage of 0% APR deals.

3: Prioritise the Debt
Becoming debt free from credit card debt is a great feeling, but you mustn’t let this goal come inbetween your other debt repayments. For example, priority debt repayments should always be paid first. If you fail to make these repayments then you are at risk of losing this service, for example if you do not pay your mortgage then you risk losing your home.

DebtFree.co.uk can offer you advice about your credit card debt. No matter how high your level of credit card debt is and how much you are struggling, it is never too late to seek professional help

The credit crunch means that more people are struggling with their finances, and as our disposable income is slashed many may try and make up for the lost cash by taking out further debt. If you are struggling to sleep because you are worrying about you level of debt, then it is time that you faced up to the fact that you probably have a debt problem.

If you want to be Debt Free then you need to work out if you have a debt problem. If you want to become Debt Free then you have come to the right place. Debt Free can offer you advice about your debt, call our specialist advisors on 0800 048 1763

5 Debt Problem Signs

If you can see your actions in the following five points then you may need to seek some form of debt help as you may be struggling with your unsecured debt:

1: You are spending more than 25% of your income on your unsecured debt.

Anyone who spends more than a quarter of their salary to their unsecured debt is classed as being over-indebted, according to guidelines published by the Department of Business, Enterprise and Regulatory Reform.

If this is you then you need to face up to your debt problems, spending this amount on your unsecured debt means that you may struggle to make your secured creditor commitments.

2: You can only afford to pay the minimum payments to your unsecured debt.

If you are only making the minimum payment to your debt because that is all you can afford, then this is an early warning sign of having a debt problem. Only paying the minimum about towards your debt is a dangerous way to deal with debt, as you will be surprised at how quickly your debt can add up.

If you cannot afford your debt you need to make sure that you can at least afford the minimum repayment, as bounced cheques and paying bills late will only add to your debt problems due to the charges that will be added.

3: You hide the letters that you receive from creditors

It is never a good thing if you are hiding the true extent of your debt from yourself. Try not to bury your head in the sand but instead take your first step towards positive action and escaping your debt problem.

No matter how big your debt problem is, there is always a debt solution for you and being unable to afford your debts does not mean that you have to declare yourself bankrupt. Think about if you would benefit from government help in the form of an IVA.

4: You are taking out new debt to pay off old ones but your debt levels aren’t going down.

Consolidating your debt can be a good way for you to gain financial control over your debts. However the problem comes when you pay off your old credit cards with a loan but still continue to spend on your consolidated credit. This will just leave you with higher levels of debt that you struggle to clear.

If you want to consolidate your debt into something much more manageable but without the risk of taking on extra debt, then a Debt Management Plan might be the right solution to your debt problems. With a Debt Management plan, Debt Free will negotiate a lower monthly payment to your creditors. You make this reduced payment to us and we will distribute the funds as appropriate. You may find that this will reduce the pressure to meet your secured creditor payments such as mortgage or utility bills.

5: You cannot afford to save any money

It sometimes makes better sense to throw any spare cash at your debt instead of putting it into your savings. This way you reduce the length of time that you are paying off these high-interest credit and store cards.

However if you cannot afford to save anything after you have made your monthly expenses and you don’t have any extra to contribute towards your debt, then you need to start thinking seriously about your cash-flow.

What to do if I have a Debt Problem?

If these 5 Signs of a Debt Problem sounds like you, then chances are that you may have a debt problem and it is important that you take action sooner rather than later. Keeping it to yourself is never a good idea and it is important that you discuss your debt problem so that you can seek a debt free solution.

Debt Free can offer you free professional help about your finances and we can offer you a debt solution which can help you to tackle your debt problem.

Take the debt free test to see which debt solution is right for your debt problems.