Write off all the debt you can't afford

 
Getting into debt is not that unusual, many of us live our lives owing something. If you're in more debt than you can handle and beginnng to feel desperate, though, it's time to consider your options carefully.

Debts consolidation
Many are tempted by a consolidation loan where a company takes on all your debts and you only have to pay them on monthly payment. Consolidating your debts through a re-mortgage, secured or unsecured loan could reduce your monthly outgoings. But beware of high interest charges and always think very carefully before you use your home to secure any sort of loan.

Reduce your monthly payments without a loan
Borrowing more money to pay off debts may not be the solution, especially if you have already consolidated your debts with another loan. There are many ways to deal with your financial situation and understanding the options available could save you getting further into debt.

A debt management company could help you negotiate, it can agree reduced monthly payments with your existing creditors based on what you can offord to pay.

Formal debt management for substantial debts
If you have debts of over £15,000, an Individual Voluntary arrangement(IVA) may be of use. IVA is a legal agreement between you and your creditors to pay an agreed amount over a fixed period, often 5 years, after which any unpaid debt is written off.

Bankruptcy
Consider carefully as a last resort if your situation is unlikely to improve.

Whatever you do, don't panic and seek sound advice.

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