Are you swamped in a mountain of debts? You are not alone. Whether your debt problem was occasioned by unemployment, overspending or illness, it can be overwhelming. There are various solutions for insolvency like bankruptcy and debt relief. Bankruptcy is disadvantageous in the sense that it will leave a negative record on your debt record for up to 10 years. Debt relief is, therefore, a much better solution.
What is Debt Relief?
Debt relief refers to the reorganization of debt in any form or shape, with the goal being to provide the indebted individual with some kind of relief, either partially or entirely. It can take many forms which include lowering interest rates on loan amount due, reducing the outstanding principal amount or even extending the loan term.
How do I apply?
The only way you can apply for debt relief programs is through a special adviser known as an approved intermediary. You cannot apply by yourself to Insolvency Service. The law requires that you first get advice from approved broker, who upon agreeing that debt relief is right for you, will advise you and apply for you.
Applications will be sent to the office of the official receiver through a particular online system. In most cases, the official receiver is an agent of the government who deals with your application. No court hearing is needed.
Am I Eligible?
There are some rules you have to meet first before you can qualify for a debt relief program.
• You must show proof that you are not able to settle your debts?
• You must have a total of at most $25,000 at the time the official receiver approved the application.
What are its advantages?
The main reason why people choose debt relief is so as to avoid bankruptcy. Bankruptcy will be with you all your life. The entry will be on your credit report for ten years. It will severely hamper your chances of getting credit in future, and it will become even harder for you to get a job. Therefore, to avoid going the bankruptcy way, people would rather use the option of debt relief.
Less time to repay your debts
A good debt settlement program will give you 2-4 years within which to repay your debts. It is a much shorter time compared to the duration you would usually be required to service your debts.The tough economic times have meant that more and people are defaulting on their debts. If you are among these people, know that you certainly aren’t alone. The method you choose to settle the owed amount is what matters. Choose debt relief programs.