Many people in the UK find themselves in debt at some point, however if you find that repayments are becoming unmanageable there are a number of debt relief options available.

Before you consider more serious options such as Individual Voluntary Arrangements or using Debt Management Companies there are a number of simple steps you can take to help you make the most of your money. Firstly, cut costs. This may sound simple but by examining your outgoings and reducing them right down to the bare essentials can save you valuable pennies when it comes to repayments. Also ensure that you are paying the right taxes and are getting all the benefits you deserve; if not that is probably the reason you are struggling with repayments.

If you still find yourself in trouble there are a number of debt relief solutions. Consolidating your debts by either taking out a large loan to cover it or using Debt Management Companies is a good way to reduce your bills into one simple monthly repayment. It is always advisable to speak to an independent adviser though to ensure that the Debt Management Companies are not charging too much or the loan is more than you can handle.

For more serious debt you may have to consider options such as a Debt Relief Order. This would be advisable for debts of under £15000 and will cover loans, overdrafts and credit card payments, rent and utilities bills among others. This option is good if you have few assets and a low income. Individual Voluntary Agreements are a more serious step for those with debts over £15,000. It is less drastic than declaring bankruptcy and can reduce the amount you need to pay overall. Both of these options need to be set up by an authorised debt specialist.

Whatever your level of debt it is always advisable to speak to an independent specialist before deciding on a course of action. For full debt management services help and advice try debtmanagementservices.org.uk

This is a topic many would rather not discuss. However, when situations turn that you cannot meet your obligations to your creditors then it is a reality check time. Debt management is necessary for anyone who, despite the burden of debt, would still want to save his/her public image and still transact some business, albeit at a reduced pace. There are several methods that have worked over the past including;

Bankruptcy
Considering the roots of this word and its applications today in the financial world, one would almost make a direct connect. Bankruptcy is believed to come from the Italian phrase banca rotta to mean broken bench. Its meaning, filing for a court order to absolve an individual from debts is almost a kin to breaking a creditor’s bench or working capital for that matter.

Debt Consolidation
Those with limited knowledge of finances categorise this debt management method as the case of digging a whole to cover another. Those in the know, however, say it is a bright idea especially if the rates of the new facility are low. It involves getting a loan facility against collateral, ideally at a lower market rate and using the proceeds to settle earlier unsecured debts.

Initiating a Debt Consolidation Plan
This involves getting into formal agreements with creditors to renegotiate the terms of the outstanding loan facilities. Its main purpose is to help a client debtor end up with a manageable repayment schedule.

Debt Relief
This requires a lot of benevolence on the part of creditors. It involves the complete or partial writing-off of outstanding debts. The aim usually is to help slow the accumulation of debts. Mostly, it is nations and organizations rather than individuals who qualify for this sign of good heart.

Debt Snow-balling
A method most suitable for credit card debts and other accumulated revolving credit. The principle is to pay the least debts in turn. On completion of one, the amount set for it is then transferred to pay the next least debt. This is debt management in a wrap.