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When you’re struggling with debt, you may feel like there is no way out – I’ve been there myself. It can have a huge toll on your mental health and leave you feeling helpless. However, in 2024, it is easier than ever to find a solution to help you deal with your debt problem. Whether you’re in a large sum of debt, or you’re looking to get a smaller debt under control before it spiralls, there are solutions to fit every situation.
With so many options to consider, it is important to seek debt advice to find the best path forward. Some ways to deal with debt include a Debt Management Plan (DMP), Debt Relief Order (DRO), Individual Voluntary Arrangements (IVA), or a Protected Trust Deed (PTD).
Ways to deal with debt
Protected Trust Deed
A protected trust deed or Scottish Trust Deed is an ideal debt solution if you are living in Scotland. It allows people with debts over £5000 to freeze interest and charges, whilst committing to affordable monthly payments. This is a legally binding formal debt solution which provides legal protection against creditors and is usually 4 years long. Once this is completed any remaining debt then gets written off.
Using a Protected Trust Deed to deal with debt is a great solution, especially if you have high interest rates.
Setting up a debt management plan
If you’re looking to avoid a formal debt agreement, a debt management plan may be the perfect solution for you. If you are struggling to make all of your monthly payments but are to make smaller consistent payments each month for an extended period, a DMP could work for you.
A debt management plan will only cover non-priority debts or unsecured debts, therefore it isn’t an option if your debts are things such as a TV license, council tax or rent.
Seeking further debt advice
With so many different ways to deal with debt out there, it is important to seek debt advice. This can be done via many charities or a specialist debt company. If you research the type of debt solution you’d like, you can provide this to an advisor who can help you discuss whether this solution will work for you. This depends on the type of debt and the amount of debt you owe all whilst making sure the option fits your income and needs.
It is important to remember there is always a way out of your debt issue.
