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Home > Ask The Get Out of Debt Experts > I’m in the UK. Is There Any Way I Can Get Out of Debt Without Paying a Fortune for Help? – Dean

I’m in the UK. Is There Any Way I Can Get Out of Debt Without Paying a Fortune for Help? – Dean

Dean

“Dear Steve,

I have 2 credit cards and 2 loans totalling almost £52000, i am struggling to make my monthly repayments as the interest is crippling, one of my credit cards has recently been handed to a debt recovery agency which has helped a little as the interest on that has now been abolished. but i am still struggling to make my monthly repayments and be able to live. i recently spoke to a debt management company who wanted me to pay them 300 pounds a month for 2 months then they would contact all my lenders to see if i could get my repayments lowered. they said 300 a month would cover all of my debts but they would be taking 57 pounds of that every month for 150 months, but i don’t really want to be in debt for 150 months and paying someone 600 pounds then 57 a month for 150 months.

Is there a way i can lower my monthly repayments without paying someone a fortune to help me?

Dean”

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The Answer

 

Dear Dean,

The debt assistance marketplace in the UK allows for all types of debt management companies to assist you. The two debt elimination options that are legally binding on your creditors are the Individual Voluntary Arrangement (IVA) and bankruptcy. You can learn more about these options and get help with them here. An IVA is paid for by the creditors and will last for up to 60 months and a bankruptcy will discharge your debt and will be over in about 9 months.

Other options that are available include working with a debt management company (DMC) or visiting Citizens Advice for free help.

DMCs are for the most part for-profit groups in the UK. These groups will charge a fee for the service they deliver to you. In your case it looks like £57 per month.

I agree with you, 150 months of debt repayments through a debt management company seems like an awful and excessive long period of time to be in a debt management plan.

Im in the UK. Is There Any Way I Can Get Out of Debt Without Paying a Fortune for Help?   Dean
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About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
  • http://www.talkaboutdebt.co.uk Talk About Debt

    My advice would be call a debt charity like the Debt Advice Foundation, Citizens Advice or CCCS. There a few solutions to help, they are all different and it’s important to get the right one from the right organisation.

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