Debt Relief Orders are designed to provide a straight forward alternative to bankruptcy, debt management plans, or an IVA. They are often an attractive option for people with little or no income and few assets. If you are struggling to make ends meet and have debts which prevent you from getting your finances in order, a Debt Relief Order could be the right choice. A Debt Relief Order protects you from creditor harassment, reduces your debts and gives you the time you need to sort out your finances. Qualifying debts included in a DRO will be written off after one year.
Debt becomes 'bad debt' when you become unable to make the monthly repayments, or are limited to paying back only the minimum each month, which would mean that you would never be able to clear the debt. Bad debt relief comes in a variety of forms; you could take a bad debt consolidation loan, or use equity from your property or a mortgage loan to pay off the debt.
Think carefully before securing any debt against your property, because unless you manage your finances prudently once you proceed with this type of bad debt relief, you could be in danger of losing your house.
The whole point of bad debt relief is to alleviate the financial pressure of debt. It is important to see bad debt relief as a change of lifestyle, meaning that you need to commit to dedicating all of your available finances to freeing yourself from debt. Therefore, cut up credit cards and store cards once you have paid them off and aim to live within your means.
DebtRestart.co.uk does not charge a fee for our service. Debt Advisers may charge a fee but only after you have
agreed to use their services and this will depend on the debt solution provided. They will explain their fee basis to you. It is usually taken out of the monthly payments you agree to make.
DebtRestart.co.uk is 100% free for you to use. In order to keep this service free for our customers, we charge the commercial
debt companies a fee when we pass them your details for more information on a debt product.