Unable to Pay Your Credit Card?

Are you unable to pay your credit card? There is help to get you out of your situation before it becomes any worse. If you are worried about bankruptcy or constant phone calls from your credit card company then there are two options to help you - a debt management plan and an Individual Voluntary Arrangement (IVA).

A debt management plan is an informal arrangement between you and your creditors, with the aim of ensuring you have much lower monthly repayments. You can have up to 75% lower repayments to your creditors each month, although most people will only have payments 60% lower or less. You still have to pay all your debts back but the much lower payments are designed to make sure you can manage this. This plan is usually aimed at lower debts, such as those from £2000 to £10,000. There is no formal period that a debt management plan will last; it will depend on the size of your debts.

An IVA is a contractual arrangement which tends to be for those with higher debts of over £10,000. It is possible to freeze interest, cancel some debts, and have lower monthly payments with an IVA. Again there is no formal period for an IVA to last, but most of the time your IVA will guarantee that you are debt free within 5 years if you stick to the terms of the agreement.

You can discuss both options with an Insolvency Practitioner and they are 2 great solutions if you are unable to pay your credit card.

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