If debt consolidation doesn’t seem like the best solution for you, there are several other options that might be a better fit for your unique financial situation. Each option has its pros and cons, depending on your level of debt, income stability, and credit score. Below is a list of popular debt consolidation alternatives, with a brief description of each and links to additional resources where you can find more detailed information. Let’s explore some alternatives to debt consolidation and see which may suit your needs best.
Debt management
Debt management provides a way for you to regain control of your finances without needing to take out an additional loan. Typically, this process is handled by a professional debt management company. It is also possible for you to negotiate directly with your creditors. By choosing debt management, you create a pathway to address your financial challenges more effectively, working towards manageable payments and reduced financial stress.
Read more about debt management here
IVA
An Individual Voluntary Arrangement (IVA) creates a legally binding agreement between you and your creditors. This allows you to repay your debts over a set period, usually five to six years. With an IVA, you may have a substantial portion of your outstanding debt written off once you complete the repayment plan, depending on your financial situation. This solution simplifies debt management by consolidating your obligations into a single monthly payment. Additionally, this payment typically aligns with your income and essential living expenses, offering a more affordable and sustainable way to manage your debt.
Read more about IVAs here
Remortgage
Remortgaging can release cash tied up in your home to be used for a number of purposes. Most popular amongst these is paying off debts.
Read more about remortgages here
Helpful debt consolidation loan links
Types of debt consolidation loans
Can I get a debt consolidation loan with bad credit?
Getting the best debt consolidation loan
Debt consolidation
Remember, Advance With Finance is a completely free, impartial service. Although the information on this website is provided by industry experts, it should never replace the advice of a debt adviser who understands your individual circumstances.
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