You have probably heard about it but you don’t know for sure how this could help you. It is very simple. IVA will help you to pay off your debts in less than five years! Moreover, you will have the benefit of legal protection, which means that, in this period, you won’t have to pay any interests or delay penalties.

 To take advantage of this individual voluntary agreement you only have to sign a formal agreement with your creditors. Through it, you will have the possibility to pay a percent of your debt in a determined period. IVA represents also the best solution for the ones that have too many debts and are trying to avoid bankruptcy and its negative effects.

Moreover, it is offering you a better handling of your debts and also the assurance that you won’t accumulate any more debts during your contract. IVA has no limits regarding debtors. It is addressed to a person that has a regular income and which, in the past, applied for loans and is not able to pay them off in the present. So, if you think that bankruptcy remained the only way out to get rid of debts, give it another thought! If you find yourself in this situation, IVA is the best debt solution for you. In a few words, signing these individual voluntary agreements means that your creditor will reduce the amount of money that you owe in change of your commitment to pay monthly a percentage of your income, during the next five years. The first thing that you have to do is to ask specialized advice.

Financial counselors will help you find the best creditor with the most appropriate conditions and criteria for your financial situation. They will present you the market offers and once you decided upon some, counselors will send your file to the lenders you selected. Once the IVA is signed, your debt will be reduced and monthly payments will start. So don’t follow the final solution of declaring yourself bankrupt.

Apply for individual voluntary agreement and provided you maintain payments – five years you will simply delete all your  unsecured debts!

Debt comes down as a curse and destroys your mental peace so try to avoid being a victim to the debt problems.

If you are willing to come out of the trap of debt then you need a proper guidance of a financial advisor. He would assess and locate your issue regarding finance and help you with proper suggestion. This article would throw some light on different ways how you can escape from the maze of debt.

Steps to liberate you from debt:

• Calculate all your pending bills: You need to know the exact amount you owe so calculate all the bills together including the interest rate levied on the outstanding balance. Get hold of all your credit card statements and make a list of the interest rates, total owed amount and the minimum monthly payments. Give priority to the card by the interest rates they charge. And high interest rate cards should top the chart as it needs to be paid off quickly before the soaring interest increases the outstanding balance.
• Go for a debt settlement program: If you are thinking of getting rid of the debt then a debt settlement programme can help you. They negotiate with the creditor on your behalf and lower the outstanding balance as well as the interest rate to an affordable amount. Once you enroll with the debt settlement program the creditor would stop harassing you as they would find a fine ray of hope to get back their money.
• Maintain cards with lower interest rate: If you are planning to keep two cards then keep it with the lowest interest rates. Try to get hold of a card with interest rate less than 14%. Avoid the use of high interest rate cards. Close the accounts by informing your card issuers. Before the cancellation of the card, go through the terms and conditions. Credit issuers might penalize you with higher interest rates on the outstanding balance if you choose to close the account. If you come across the same problem then make sure that you pay off the debt and then cancel the card.
• Transfer you balance from higher interest rate to a lower interest rate: Try to consolidate your debt as it would make the repayment process much easier. If you are keen to get out of debt then transfer your high interest rate balances to a card with an extremely low rate of interest and then start paying them off. As many credit card issuers offer preliminary rates as low as 3.9% for six months this is the time to transfer all your existing balance and to pay off your dues.
• Save and pay off your debt: Prepare a balance sheet and pen down the entire amount you need to pay back. If you maintain a budget then it would be convenient for you to keep a track of the flow of cash. You can even trace whether your income exceeds your expenditure then this would help to keep a check on it. Keep aside a portion of your salary in to the savings account so that you can pay off your debt with the money you have saved.

These are the few basic tips that would pave your path to a Debt Free life. Follow these simple rules then you can easily escape from the trap of debt.

The answer is yes! Becoming debt free can really help you financially.

You can not turn anywhere without hearing the dreaded words: “credit crunch”. You may feel as though you have not been affected as you are doing fine financially, but becoming debt free is essential if you want to avoid some of the effects of the credit crunch.

No matter what your level of debt it can cause you a huge amount of stress. Even a small amount of debt can make paying the bills a much more stressful and time-consuming task. You may find that you forget to repay your credit card or store card debt and that you are building further interest on your debts, which is why becoming debt free is important.

Once you have paid off your unsecured debt and become debt free, you don’t have to worry about missing repayments to these debts as the bills won’t be coming through your door. Your lifestyle will also benefit as now you are not paying interest and charges on the debt, as there is no debt to repay.

Being debt free can help you plan for the unexpected. If you find that you are in a financial emergency you could have the money available, perhaps because you have been saving more (because all your money is not going to repay your debt) or you have the credit spare on credit cards and you know it will be affordable to you.

One essential thing about being debt free is that you can start saving, or you may wish to contribute more to your pension fund meaning that you will have the money spare for a rainy day or a financial emergency. And on top of that, you will actually be earning interest instead of paying it

The best debt free solutions company could be the one that offers the services at a level that you can afford. Most debt free solutions companies do charge for their service, and this could be something that you want to consider.

After this point you may want to investigate further – find out a little bit more about the company, such as what other products they offer and ensure that they offer a wide range of services so you know you are going to benefit from a debt free solution which helps you. Some debt free solutions companies just tend to specialise in one product, such as a Debt Management Plan, this can be useful but only if you want Debt Management, you may find that you are closed off to other debt free solutions which would suit you better.

You will be pleased to hear that DebtFree.co.uk are a debt free solutions company which aims to offer you a complete service. Not only do we specialise in debt management plans, we specialise in a range of other debt free solutions, such as IVA, Trust Deeds and bankruptcy. This puts us in the best place to ensure that you get the right advice and debt free solution for you.

No one can decide which debt solutions company is right for you, as that is your decision to make. If you are confused about which is right for you, please feel free to call our debt free advisors. They are fully trained and can offer you the DebtFree advice which is right for you.

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.

We all know how important it is to save money so we have access to a little bit of extra cash should we need it on a rainy day, such as having to pay for car repairs.

There are simple saving tips which you can follow to ensure that you are maximising your income:

1: Save the change – We all know the old saying that our parents have told us, save the pennies and the pounds will look after themselves. This is really great advice to follow as those pennies can easily add up, leading you on the route to increasing your savings and becoming debt free.

Save the change everytime you buy something. So you can choose to save either the copper or the silver, or even both if you are feeling flush. Put them away in a sealed container so you can’t have access. When it is full, go down to your local bank and ask them to pay it straight into your savings account or to pay off your credit card, so you are not tempted to spend the cash.

2: Enjoy Being Saving Savvy – Saving becomes even more impossible if you have no motivation so it is important that you set yourself a goal, such as a house deposit or a new car.

It is likely that saving means you will have to say no to a few social offers. So every time you turn down a trip to the pub, put the £20, £40 or more that you would have spent aside. This trick will really see your savings.

3: Use Coupons – Since the credit crunch, an increasing number of people are using coupons both online and instore in order to save money.

Before you buy an item online it is always worth checking to see if there is a valid coupon on the internet. The extra money that is saved should be put aside and added to your savings and you shouldn’t notice a difference as this is money which would have been spent regardless.

4: Don’t pay to access your own money – Your money is yours and you shouldn’t have to pay extra to withdraw it. But there are cash machines out there which will do just that. Some ATMs can charge you up to £1.50 each time you withdraw from their machines, so it is always worth avoiding these and finding one close by which will let you withdraw for free.

5: Sell, Sell, Sell – Chances are you have items which you no longer need or want. Although you may think that your old clothes are not-fashionable and no one would want to buy it, you would be surprised!

Online auction sites, such as eBay, are a great way to sell your items and de-clutter your home at the same time. Or you might want to go to a car boot sale and sell your items that way

However, if you have debts then you might be wondering whether you should concentrate most of your spare funds on paying off your debts to become Debt Free as, due to the level of interest of both of these products, it could save you a lot of money in the long run.

In general, if you are having problems with your debts, or if you are left with a low disposable income once all your outgoings have been paid, then it could be a good idea to focus on paying off your debts so you can become debt free.

Becoming debt free by paying off your debts could save you money in the long term, because the interest on unsecured debt usually grows at a much faster rate than your savings. Typically the average interest rate on credit card debt is at 17.74%, according to Credit Action statistics for June 2009. Whereas research by the Conservative Party discovered that the average interest rate paid on £10,000 worth of savings is an average of 1.53%.

However, dependant on the debt type, if you decide to overpay or settle the entire debt early using your savings, make sure you ask your lenders about any early repayment charges. This does not apply to all debt, but is worth asking so you won’t have to worry about additional charges when trying to become debt free.

Savings can also provide you with a good ‘safety net’ if you need some money due to an unexpected cost, such as car repairs or household maintenance. Therefore if you feel that you are in control of your debts it can be advisable to save.

But the best financial decision must be made by you. You should have a good grip on your finances so you know how much cash you have to spare each month. It depends of you want to have some savings to fall back on or you would rather become debt free as soon as possible.

I Can’t Afford to Save or Pay Off my Debts.

If you cannot afford to save or pay off debts it is essential that you seek professional debt advice as soon as possible. There are debt solutions which allow you to pay off debts with a reduced monthly payment so that you can afford your debts (as all repayments to debt are calculated after outgoings have been accounted for).

If you do not make at least the minimum payment on time, then you will be facing additional charges and penalties being added to your debt, meaning that you will be seeing your debt level rise higher and higher.

There are ways that you can reduce debt payments, and Debt Free can help you reduce your debt payments in a number of ways. Once you realise that you are struggling with your debt, it is important that you seek professional advice as soon as possible.

There are a number of debt solutions on the market, but you need to know which of these can reduce debt payments and offer you the best way to deal with your debt, as each debt free solution is different.

Those with debt levels over £12,000 may find that the best way they can reduce debt payments is with an IVA. Not everyone is eligible, so please contact Debt Free to see if you are. With an IVA you will be debt free in 60 months and all unpaid debt is written off on completion of the IVA.

An IVA will reduce debt payments to a level which you can afford. The amount that you pay is dependant on your unique financial circumstances.

Debt Free can help you to reduce debt payments. We will help you go through your finances and help you to decide which debt solution is right for your personal financial situation, whether you are looking for an IVA, Debt Management Plan or Trust Deed

You might be calling about how to deal with high levels of debt. If you have over £12,000 worth of debt then you may be suitable for an IVA. An IVA allows you to make reduced payments to your creditors, and most of our Debt Free IVA clients can expect to be debt free in 60 months. An IVA is only suitable for residents of England, Wales and Northern Ireland.

This may be a problem for some localised financial solutions companies, but as we offer national debt advice, we can also help Scottish residents. A Debt Free Trust Deed is an IVA alternative which are only available in Scotland. It works in a similar way to an IVA, but you can typically be Debt Free in 36 months.

Through our online website we can offer you debt advice, such as Debt Free Tips which can provide you with tips on better ways to manage your debt, so you can be on the road to becoming debt free.

FREE National Debt Advice.

Debt Free provides a free and ethical national debt advice service. Our advisors are on hand to answer any questions that you may have about your UK debt, and the best way to manage your finances.