More Solutions Than You Think!
The great news is that there are more solutions to debt than you were probably aware of. Here at Reviva UK we have the experience and specialist knowledge to understand your circumstances and identify which solution – or mix of solutions – would work well to get you out of debt as quickly and painlessly as possible
The solutions to debt we use are:-
· Debt Management
· Snowballing
· Re Finance
· Negotiated Settlements
· Individual Voluntary Arrangement ( IVA )
· Bankruptcy
Debt Management
This is a process where your creditors are contacted, given evidence of your current financial position and a reduced monthly payment or ‘pro rata’ payment is made towards the debt. Depending upon creditor it is possible to negotiate an interest free period.
Debt Management in itself will not get rid of debt, however used in conjunction with the other solutions below it may calm down creditor pressure while you assess a long term solution.
Snowballing
Snowballing is the method of paying off your highest bearing interest debts first and really focusing on a careful budget while using all disposable income to clear debts as quickly as possible – in the correct order. You could save thousands of pounds by simply planning your repayments correctly.
Reviva UK will construct a manageable budget and calculate which debts should be paid when. You will then have a schedule and have the comfort of knowing when you will be debt free.
Negotiation
You may be in the position that you have an amount of money available either from refinancing or from a third party such as family but it is not sufficient to repay all of your debts and your circumstances are such that you do not have disposable income to clear the debts.
Reviva UK may be able to approach your creditors with a proposal of a reduced ‘one off’ payment to completely clear the debt. This will take some considerable time to arrange and we may need to arrange a creditors meeting to vote on the overall proposal.
Re Finance & Consolidation
The traditional way of repaying debt is to take out even more credit and spread the repayments over a greater period of time. You should think carefully before refinancing to ensure that the terms of the new agreement are completely affordable within the family budget. Reviva UK can assist you in choosing a suitable finance agent that understands the complexities of debt consolidation.
Individual Voluntary Arrangement (IVA)
An IVA is a formal agreement between you and your creditors where your repayment proposal is more desirable to the alternative Bankruptcy. Once agreed, this is legally binding and ratified by the court.
An IVA is an excellent solution to debt for some people, but careful consideration needs to be taken before undertaking an IVA because 5 years is a long time and you really need to be sure that it is affordable and the right solution for you.
Bankruptcy
Bankruptcy is the traditional 'last resort' solution available to individuals with serious debt problems. It is an option that is often considered when an individual cannot pay all of their debts in full. You can either petition the court to make yourself bankrupt or one of your creditors might choose to do so. If you are declared bankrupt you will be protected from your creditors and be debt free, however there will be implications.
You should seek professional advice before going Bankrupt to ensure you fully understand all the conditions and implications.
Advantages of Bankruptcy
· You are debt free
· Your Creditors are legally not allowed to chase you for money
· You will generally have an automatic discharge in 12 months
· You are free to start rebuilding your life
Disadvantages of Bankruptcy
· You may need to make a contribution to your debts from your disposable income – but only what you can afford
· There are certain jobs that you can’t do while you are in bankruptcy
· You can’t hold public office while bankrupt
· There is an impact on your credit file
· Ownership of all your assets will pass to the Official Receiver
