You do not necessarily need to enter into a debt solution to satisfy your debts. There are alternate means of self-management which may be beneficial before considering debt solutions.
If you are 55+ and own a property, you may access the money tied up in this property and take a tax-free cash lump sum to satisfy any outstanding debt.
This is when you make a small payment (token payment) to your creditors. By doing so you emphasise that you want to repay your debts but at this moment in time, you are unable to afford to pay them anything more than the small payment offering. It is advised working out a budget and making a proposal to your creditors. By law, your creditors must accept a payment, no matter how small, even if they reject your offering.
A repayment plan is an agreement negotiated with your creditors to pay back an affordable amount per month. Correspondence is sent to creditors requesting considerations to be made, based on your income and expenditure as well as other factors such as customer vulnerability. By doing so you emphasise that you want to repay your debts but at this moment in time, you are unable to afford to pay them anything more than what has been established throughout your affordability assessment. As such, we will work out a budget and present this to creditors. By law, your creditors must accept a payment, no matter how small, even if they reject your offering.
A remortgage means you replace your existing mortgage with a new one, either by changing products with the existing lender, or switching to another lender entirely. We are not able to advise on this and recommend you speak with your mortgage lender directly or alternatively seek further advice.
Talking about money with friends and family can be very sensitive and personal, however it may be worth speaking with friends and family who may be able to assist to some degree with handling your financial situation. It is always worth exploring these options before enquiring about debt solutions.
If you have any savings tucked away, it is worth using this to satisfy any debts where possible.
Some credit cards let you transfer the balance from one card to another card. Transferring a debt from a card with a high rate of interest to one with low or 0% interest could help you pay off the debt faster.
But low or 0% interest credit cards are hard to get if you do not have a good credit rating. This means you can not rely on balance transfers as a way to deal with your credit card debts.
Also look out for fees when transferring a balance. Most credit card providers charge 2-3% of the amount you are transferring as a one-off fee. If you are transferring a balance to take advantage of a lower interest rate, the fees may mean you save less than you expect.
If you do transfer a balance, make sure you cut up the old credit card and close the account. Otherwise, you may be tempted to keep spending on both cards and you will end up with two debts.