A Debt Management Plan, often known as a DM is a solution that allows you to pay your debts back at a rate that you can afford.

With a DM all of your monthly debt repayments are consolidated into one, lower and more affordable amount, your interest can be stopped and you retain the flexibility you need to pay what you can afford, when you can afford it.

Debt Management

A Debt Relief Order, often known as a DRO is a relatively new solution that can be used for debt consolidation. A DRO is available to people who owe less than £15,000 and have a disposable income of less than £50 per month. With a DRO you would be debt free in a year without having to make a payment however there are some very strict criteria that need to be met if you are to consolidate debt in this way.

Debt Relief Order (DRO)

A Scottish Trust Deed, often known as a TD is a solution that was put in place by the government to help people that are struggling with debt and living exclusively in Scotland.

A Trust Deed allows you to make one monthly payment, based on what you can afford for just 36 months and your debt free. You will write off whatever debt is remaining.

Scottish Trust Deed (PTD)

Bankruptcy is perhaps the most well know solution used for debt consolidation.

By Declaring yourself Bankrupt or indeed being declared Bankrupt, all of your debts are written off in one go. There are however some very serious implications associated with going Bankrupt and there are often much better ways that you can consolidate debt without having to take this consolidation route.  

Bankruptcy

A Re Mortgage is a solution that would allow for the consolidation of debt by borrowing against your property. The idea is to replace your existing mortgage as well as releasing equity from the property which you would then use to pay off and consolidate your debts leaving you with just one monthly payment.

Re Mortgage

A secured loan is a loan that is exclusively available to homeowners.

Secured loans are taken out with an asset often a home or property used to guarantee the loan. The benefit of this is that you can often borrow more money for a lesser interest rate. However if you default on the loan then you could lose the asset, even if its your home

Secured Loan