Your Problem
You do not have spare income each month to be able to repay your debts.
Possible solutions
You need to immediately review your finances immediately. Can you reduce your spending and/or boost your income? If so, select 'yes' for the last question.
If you can't cut costs or earn more then bankruptcy could be the answer. This sounds extreme but without some way of repaying your creditors you may not have a choice. Of course you might be able to get money from someone else - perhaps a relative.
Where can I get help?
Try your local Citizens Advice Bureau at http://www.citizensadvice.org.uk. More information on bankruptcy is also on the DTI website: http://www.insolvency.gov.uk/pdfs/guidanceleafletspdf/guidetobankruptcy.pdf
Your problem
Your debts are out of control but you have some surplus income and could repay some of your debts.
Possible solutions
You need to review your finances immediately - can you reduce your spending and/or boost your income? That would release the maximum amount to pay off your debts.
Your level of debt means that a debt management plan may help. You should also think about a debt consolidation loan if it reduces the amount of interest you are paying and brings your payments down to a manageable level.
You could also consider bankruptcy. Because you don't own a property, the impact of bankruptcy will be less and it can provide a fresh start. Think carefully, however.Bankruptcy can have an impact upon your job, business and personal life.
Where can I get help?
RSM Tenon debt solutions does not specifically provide consolidation loans or debt management but we can suggest carefully selected companies. Contact us on 08000 915 004.
You can also try your local Citizens Advice Bureau at http://www.citizensadvice.org.uk. More information on bankruptcy is also on the DTI website: http://www.insolvency.gov.uk/pdfs/guidanceleafletspdf/guidetobankruptcy.pdf
Your problem
Your debts are out of control but you have a property that may have enough equity to repay your debts in full. Unfortunately you do not have any surplus income.
Possible solutions
You need to review your finances immediately - can you reduce your spending and/or boost your income? If so, remortgaging your property might release enough money to pay off your debts*. Make sure you really can afford the increased mortgage payments. Also, ask if you can extend the mortgage term for a lower monthly payment (note that this will increase the total amount you have to pay over the term of the mortgage).
Consider a secured loan* or unsecured loan too but be careful - these are often more expensive than an increase in your mortgage.
Finally, you could consider selling your property. Perhaps you could move to a smaller home, or rent until your finances are back on track.
*YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR OTHER LOAN SECURED ON IT.
Where can I get help?
Your local Citizens Advice Bureau may be able to help at http://www.citizensadvice.org.uk.
Call your existing mortgage lender to see if you can increase your mortgage to cover your debts. Ask about other options like increasing the length of your mortgage and remember that you may be able to remortgage with another lender if your current lender can't help.
If you are not sure you can afford the monthly payments, always seek professional advice before entering into an Agreement for a loan or mortgage secured on your property*.
RSM Tenon debt solutions does not arrange remortgaging but we can suggest carefully selected companies. Call us on 08000 915 004.
*YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR OTHER LOAN SECURED ON IT.
Your problem
The level of your debts mean that debt management could help you. Especially if you have a number of expensive loans or credit cards and you can consolidate your debts into a single loan with lower repayments. Take care, however, because consolidation loans are secured on your property. If you arrange a consolidation loan and then don't manage your repayments you could lose your house.
A remortgage of your property might help if you have enough equity to pay off your debts. This is better because mortgages usually offer a better rate than unsecured debts or consolidation loans. You still need to be sure you can afford it, however.* One more point to note - extending the period of a loan to lower your monthly repayments will mean you pay more in total over the lifetime of the loan.
*YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR OTHER LOAN SECURED ON IT.
Where can I get help?
First of all, call your existing mortgage lender and ask if you can borrow more to pay off your debts.
If not, RSM Tenon debt solutions does not provide debt consolidation, debt management or remortage services but we can suggest carefully selected companies. Call us on 08000 915 004.
Your problem
Your debts are out of control. You do have enough money each month to pay something to your creditors but it isn't enough to repay your debts.
Possible solutions
The best solution for your problem depends upon your circumstances. In particular, it depends on how much you owe and what you have left each month after essential living costs (i.e. food, heat, clothes etc. - not including payments to your creditors).
An IVA may be a help. This usually involves affordable monthly payments that release you from your debts permanently after five years. Provided your creditors approve your proposal, they are legally required to write off any remaining debts after this five year period.
You do have other options but the main alternative to an IVA, given your debts, is probably bankruptcy. This can have an impact upon your job, business and personal life, but you do not own a home so bankruptcy would have limited consequences.
Where can I get help?
RSM Tenon debt solutions provides free confidential advice on the best way to deal with your debt problems. Please contact us on 08000 915 004
More information on bankruptcy is also on the DTI website: http://www.insolvency.gov.uk/pdfs/guidanceleafletspdf/guidetobankruptcy.pdf
Your problem
Your debts are out of control and you have no way to repay them.
Possible solutions
You need to review your finances immediately - can you reduce your spending and/or boost your income? If so, select 'yes' for the last question.
If you can't cut costs or earn more then bankruptcy could be the answer. It would provide you with a fresh start.
Of course you might be able to get money from someone else - perhaps a relative.
If so, you could offer this to your creditors using an IVA, in full and final settlement of your debts. You would avoid bankruptcy, which could be important to you depending on your job, business and personal life.
Where can I get help?
If you have other assets or someone is willing to help you then contact RSM Tenon debt solutions for free, confidential advice on 08000 915 004.
More information on bankruptcy is also on the DTI website: http://www.insolvency.gov.uk/pdfs/guidanceleafletspdf/guidetobankruptcy.pdf
Your problem
Your debts are out of control and you have no way of repaying them. You have some equity in your property but this would not repay your creditors in full.
Possible solutions
You need to review your finances immediately - can you reduce your spending and/or boost your income?
If you release some equity from your property you may be able to offer it in full and final settlement of your debts using an IVA. This would give you a fresh start and would allow you to stay in your property.
If that isn't possible, then bankruptcy could be the answer although this may mean that you lose your home.
Where can I get help?
RSM Tenon debt solutions can provide free confidential advice on the best way to deal with your debt problems. Please contact us on 08000 915 004
More information on bankruptcy is also on the DTI website: http://www.insolvency.gov.uk/pdfs/guidanceleafletspdf/guidetobankruptcy.pdf
Your problem
Your debts may be out of control but you probably have enough equity in your property to pay off your creditors.
Possible solutions
You need to review your finances immediately - can you reduce your spending and/or boost your income? A careful look at your situation will help you decide how much money you can realistically afford to borrow by remortgaging your property.
You need advice on what solution would best suit your circumstances (see below) but you have three main options:
- If you can raise enough funds, remortgaging to pay your creditors in full is usually the best approach, as long as you can afford the mortgage repayments*. If you're experiencing extreme creditor pressure, you may be able to do this using an DM, to give you breathing space from your creditors while you make the Agreements.
- If you can't raise enough money to pay off your debts, you may have to sell your property to realise the equity. Again, if you're experiencing extreme creditor pressure then you may be possible to do this through an IVA. That would give you breathing space to market the property for sale at its full value. It would also avoid you being made bankrupt by one of your creditors.
- Bankruptcy could be considered but it's usually a last resort. You have the assets needed to pay your creditors and bankruptcy is usually more expensive than your alternatives. You also need to consider whether being declared bankrupt would affect your ability to earn an income.
*YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR OTHER LOAN SECURED ON IT.
Where can I get help?
RSM Tenon debt solutions can provide free confidential advice on the best way to deal with your debt problems. Please contact us on 08000 915 004.
More information on bankruptcy is also on the DTI website: http://www.insolvency.gov.uk/pdfs/guidanceleafletspdf/guidetobankruptcy.pdf
Your problem
Your debts are out of control but the equity in your property could be used to repay your creditors. Unfortunately, you do not have any surplus income.
Possible solutions
You need to review your finances immediately - can you reduce your spending and/or boost your income? If you can generate a monthly surplus then select 'yes' to the relevant question.
If you can't generate any surplus income then your position is difficult. Remortgaging your property for an extended term would release some funds but it wouldn't repay your creditors in full. You would therefore have four main options:
- Sell or remortgage your property and pay off pressing creditors. This is only a short term solution - it might be appropriate, for example, if you are expecting a windfall or a higher income in the near future.
- Consider a consolidation loan. This would reduce your monthly payments by letting you pay back your debts over a longer period. Take care, however, because a loan like this is usually secured on your property and you risk losing your home if you do not keep up repayments*. A longer loan period may also increase the overall amount you pay back to your creditors unless you can obtain a loan at a rate cheaper than your existing debts.
- Get a friend or relative to help you out.
- Consider bankruptcy. There is a risk that you would lose your home because you have equity in it and a Trustee in Bankruptcy would have to use this for the benefit of your creditors.
An IVA is unlikely to help in your case because of the level of your debts.
*YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR OTHER LOAN SECURED ON IT.
Where can I get help?
Your local Citizens Advice Bureau may be able to help at http://www.citizensadvice.org.uk.
RSM Tenon debt solutions does not specifically provide consolidation loans or debt management but we can suggest carefully selected companies that do. Contact us on 08000 915 004.
More information on bankruptcy is also on the DTI website: http://www.insolvency.gov.uk/pdfs/guidanceleafletspdf/guidetobankruptcy.pdf
Your problem
You are currently living hand to mouth and you can only just afford your monthly expenses and mortgage payments.
Possible solutions
You need to review your finances immediately - are you sure that you cannot reduce your spending and/or boost your income? If you can't, then bankruptcy is likely to be the best option. It depends on your personal circumstances. In particular, find out about the implications for your employment and whether being made bankrupt will prevent you from continuing to work. The benefit of bankruptcy is that it would provide you with a fresh start.
Apart from work, your biggest concern over bankruptcy is likely to be losing your house. If you have some equity then there is a risk this will happen. If there is no equity then a Trustee in Bankruptcy is unlikely to make you sell your home.
Where can I get help?
Your local Citizens Advice Bureau may be able to help at http://www.citizensadvice.org.uk.
More information on bankruptcy is also on the DTI website: http://www.insolvency.gov.uk/pdfs/guidanceleafletspdf/guidetobankruptcy.pdf
You should make sure that you get professional advice on the value of your assets before considering bankruptcy.
Your problem
Your debts are out of control. You have no assets to repay debts in full but you do have surplus income each month and could pay something to your creditors.
Possible solutions
An IVA may be a good choice. In your circumstances it usually works better than a debt management plan. You'd need to examine your situation in more detail to be sure of this.
As you have no equity in your property, bankruptcy may also be appropriate because you probably wouldn't lose your home. You should seek advice before taking this route
.
Where can I get help?
RSM Tenon debt solutions provides free confidential advice on the best way to deal with your debt problems. Please contact us on 08000 915 004.
More information on bankruptcy is also on the DTI website: http://www.insolvency.gov.uk/pdfs/guidanceleafletspdf/guidetobankruptcy.pdf
Your problem
Your debts are out of control. You have no assets to pay them in full and you have no surplus income left over each month.
Possible solutions
You need to review your finances immediately - can you reduce your spending and/or boost your income? If so, select 'yes' for the last question.
If you find that you definitely don't have any spare income then bankruptcy may be the best choice. This would provide you with a clean start.
The main drawback with bankruptcy is that you may lose your house if you have equity in it. If you don't have any equity then you probably won't be forced to sell it.
If you can find someone to help you out financially then an Individual Voluntary Arrangement (IVA) might be possible where you offer an amount in full and final settlement to your creditors. You could consider this as an alternative to bankruptcy, especially if bankruptcy would make you lose your job.
Where can I get help?
If you can find someone like a relative who can let you have some funds then RSM Tenon debt solutions can help. Call us for free, confidential advice on 08000 915 004.
Your local Citizens Advice Bureau may be able to help at http://www.citizensadvice.org.uk.
More information on bankruptcy is also on the DTI website: http://www.insolvency.gov.uk/pdfs/guidanceleafletspdf/guidetobankruptcy.pdf
You should make sure that you get professional advice on the value of your assets before considering bankruptcy.
Your problem
Your debts are out of control but you have some equity in your property, although it isn't enough to repay your creditors in full.
Possible solutions
You need to review your finances immediately - are you sure that you cannot reduce your spending and/or boost your income?
It may be that you can propose an IVA to your creditors. This usually involves affordable monthly payments that release you from your debts permanently after five years. Provided your creditors approve your proposal, they are legally required to write off any remaining debts after this five year period. In your final year you may be required to realise any equity in your property through a remortgage.
Provided you do everything you agreed to do at the start, an IVA can give you a fresh start after five years. It also usually allows you and your family to continue living at your current property.
Under some circumstances other options could be better, such as bankruptcy. You should seek professional advice because the right choice depends on a careful review of your financial position.
Where can I get help?
RSM Tenon debt solutions provides free confidential advice on the best way to deal with your debt problems. Please contact us on 08000 915 004.
More information on bankruptcy is also on the DTI website: http://www.insolvency.gov.uk/pdfs/guidanceleafletspdf/guidetobankruptcy.pdf