by Noone

Created on: November 02, 2008   Last Updated: December 10, 2009

For those of us in debt there are a few options that are available to us. None of them particuarly attractive, but then, debt is never attractive!

The first option available to you is a debt management plan. There are plenty of companies out there that if financially it is the best option for you, will put you on a payment plan. This consists of them working out how much money you have spare each month. You will then pay them that money, and they will divide it among your creditors. You no longer have any communication with anyone you owe money too. You only communicate with your debt management company. Most companies will charge you a fee for this service, but one who doesn't is

www.payplan.com.

You could also consider bankruptcy if the situation is dire, but this is not a reccomended course of action, otherwise there are IVA's. An IVA is an arrangement where for a period of five years you pay as much as you can each month (a set amount of course) and after five years your debt is wiped.

It also may interest you to know, that in the UK all credit card contracts taken out before April 2007 are actually unenforcable, and you may well be able to get your credit cards wiped, and the accounts closed. You can do this by visiting www.cartelclientreview.co.uk - However, with the fees they charge you are essentially only cutting your credit card debt by two thirds.

It may benefit you if you have lots of credit card debt and are only making minimum payments, to look for a low interest loan. This way you can ensure that your debt will be paid off at a set date, and you are actually paying back money you have borrowed instead of just paying interest every month. It also best to find a loan that you can pay off extra as and when without getting any penalties. I have a loan like this with www.egg.com.

The only other ways to clear your debt is to decrease your outgoings, and increase your income.

Decreasing your outgoings by a bit is normally not too difficult. When I looked at my bank account I had at least 50 worth of stuff going out each month that wasn't neccessary....Union membership, Lovefilm, World of warcraft. xboxlive and more. So take a look. If you're paying for anything you don't have to be paying for then cancel it!

If you drive everywhere, try and walk more places if you can, or carpool f possible, to save money on petrol, and when you're doing your food shopping experiment with the value brands....Yeah, thats write...That really cheap stuff. Suprisingly,

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