Only half of struggling borrowers have heard of IVAs, a report from insolvency trade body R3 indicates.

R3 has estimated that around 220,000 people are currently in a formal insolvency procedure (such as bankruptcy or an IVA). A further 500,000 are in debt management plans, 574,000 are struggling, but have ‘contacted their creditors informally’. And 961,000 people are struggling with their debts but haven’t yet looked for help with them.

R3′s report, called ‘Struggling with debts without help’, looks at that fourth group.

It ‘explores the views and experiences of individuals at the very bottom of the personal debt ‘iceberg’ – those who are struggling without help’.

The report covers a lot of subjects, like why those people haven’t sought debt advice, what they’ve done about their debts, and how things like age and gender affect attitudes.

Among other things, the borrowers were asked about their awareness of the options that might be open to them. Continue reading…

A debt management plan might be an efficient way for you to get your finances back on track if you can not afford to meet your credit commitments. These kinds of plans will will let you start actually paying off your money owed without entering into a formal agreement, e.g. an individual voluntary arrangement. It would enable you to create an affordable single month-to-month payment to a debt management plan provider, which can then distribute the cash to your creditors. The firm may also undertake the work involved in setting up the plan, including negotiating with collectors to persuade them to accept reduced funds for a fixed period and to either minimize or freeze interest charges.

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If you’re worried about your financial situation, there may be a debt solution that can help you make sense of your finances so you feel you’re ‘on top of things’ again.

But finding the solution that’s right for you isn’t always easy. Different debt solutions are designed to help people in different situations – some of them won’t be appropriate for you, and some of them may not be available to you at all.

Debt management is a solution that’s helping hundreds of thousands of people who are struggling with their debts, but that doesn’t necessarily mean it’s the right approach for you. Continue reading…

Debt management program is an option for a person who incurred huge debt and could not handle monthly payments on time. Debt management program is an agreement between your creditors and you to repay the debt over a period of time, usually the extended amount of time during which the debt will be repaid in full.

Debt management can be done on yourself or you can hire the services of debt management service provider. Choosing a debt management program is a good idea for people who can no longer afford to repay their debts. The debt manager will help you by renegotiating the terms and conditions of the debt such as reduced monthly payments or negotiating for you to pay the debt at pace you can afford.

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Debt problems are not very uncommon concerns nowadays due to the global economic crisis. If you are facing huge credit card debts with rising interest rates and finance charges, it is about time that you consider debt counseling, debt negotiation, or bad credit debt consolidation. You can choose to do this on your own or you can approach a legitimate and credible debt management firm to assist you in the process.

If you feel that you can handle the situation on your own, you may choose to cut down on your expenses and try to make both ends meet. Continue reading…