Debt Advice Group Launch New Debt Management Site

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London (PRWEB) August 27, 2010

The Debt Advice Group are pleased to announce the launch of their new debt advice website providing help for people in financial dire straights.

The new site, set for launch early September 2010, aims to provide innovative debt solutions for all consumer related financial problems through the use of Individual Voluntary Arrangements (IVA's) and Debt Management Plans.

These two strategies both involve a creative restructuring of debt owed to creditors so that repayment is more manageable - and less expensive - which makes it possible to get out of debt without resorting to insolvency or bankruptcy.

How our online services can help:

The Debt Management Plan is a great option for those who have less than £12,000 in unsecured debts - like credit card debt, for instance - and want to pay it off in an orderly manner by making regular monthly payments. Those who have sufficient income to make payments but are burdened by the hassle of debt and want a professional to intervene, talk to creditors, and set up a repayment plan often use a Debt Management Plan.

While a Debt Management Plan is not primarily intended to fix one's credit score or credit history, it is a very effective and efficient way to completely free a consumer from having to deal with creditors. The repayment of debt is done smoothly and quietly through our professional debt consultants - without the annoying calls and letters from creditors - and within a short time the debt is repaid.

An IVA is a formal arrangement to pay off an agreed percentage of the total debt. Once the terms of the agreement are fulfilled the debt is considered repaid and completely settled, which typically takes about five years.

Individual Voluntary Arrangements must be set up by a licensed professional who will gather information about the consumer's finances and then submit an IVA application to the court. Once the application is approved, a meeting with creditors will be arranged and a repayment plan will be presented to them. During this entire process no creditors are able to take legal action against the debtor, which guards against repossession and other detrimental actions. The court sets out guidelines for repayment, everyone signs off on the agreement, and the IVA becomes legally binding. Most IVA cases involve affordable monthly payments paid over a period of about five years. Rather than having to interact directly with creditors, the debtor simply makes a payment each month to a licensed Insolvency Practitioner whose responsibility it is to distribute the payment to the various creditors.

As long as the consumer sticks to the repayment arrangement as agreed, all of the debt will be resolved when the schedule for IVA payments has been completed. Often the IVA only requires that the debtor pay a percentage of each debt, however, instead of the full amount - so for those who have stressful and unmanageable debts this can be a wonderful solution that does not have to involve bankruptcy. Once the IVA is done, the debtor gets a brand new financial start with a clean slate.

Both of these systems - the IVA and the Debt Management Plan - are highly advantageous for consumers saddled with debt during the current UK recession. To see if you qualify or to speak to one of our debt consultants simply use our free debt solution wizard.

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