What are the alternatives?

We have already mentioned bankruptcy and the possibility of borrowing more money in an attempt to consolidate your debts.
You could also try to reschedule your debts informally with a Debt Management Plan.
A Debt Management Plan is a way of helping you make affordable payments to your existing creditors. We will assess your income and outgoings and ultimately prove to your creditors that you can not meet all your payments. We will then negotiate and agree a single new and affordable payment which will be payable to us every month. From this payment we will then distribute an amount to each creditor on a "pro-rata" basis. Creditors do not have to accept our proposals, but more are willing to accept them if we can prove it is beneficial and agreeable to both parties.
Every effort will be made to encourage your creditors to freeze interest and other charges. Please note that if your creditors refuse to freeze interest, paying the same debts over a longer period of time will increase the total amount to be paid.

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• Debt Management

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