Top 5 ways to get rid of Bankruptcy in UK

If you are in debt and thinking to go for bankruptcy, it will be better to understand that bankruptcy can have several negative impacts on your financial health. Bankruptcy is not a sensible solution to your debt problem and you should avoid it as long as possible. People who have opted for it had to lead a financially burdensome life for several years even after the discharge of the bankruptcy order. Once a bankruptcy order is passed against you in the court, you lose your control on all your assets and valuables and your life becomes miserable. It’s always better to avoid bankruptcy and seek some other ways to come out of the debt trap.

Here are 5 best ways to get rid of bankruptcy in UK.

1. Debt Settlement
If you are unable to make minimum payments every month, debt settlement can be the best choice. In a debt settlement program, your creditors may reduce your debt amount that you owe to them. In most of the cases, the debt amount is reduced by 40-60%. This reduction however depends upon your negotiation capabilities. You should contact your creditors and request them to reduce the debt amount on the pretext that you would provide them minimum monthly payments without any fail. For settlement of your debt, you can also hire a professional settlement firm. You can also try to settle your debts on your own, if you believe that you are good at negotiations. When you successfully settle your debts, you avoid your chances of being bankrupt. A debt settlement is a better way out of your debt problems. You can take benefit of a professional debt settlement company as well. However, they may charge you some fee against their services.

2. Debt Consolidation Programme
A debt consolidation programme is perfect for you when you want to make monthly payments at lower interest rates. By choosing a right debt consolidation programme, you can avoid your bankruptcy. In a debt consolidation programme, you get the opportunity to consolidate your all payable bills into one affordable monthly installment. Moreover, you can also eliminate several extra charges such as late fees applicable on credit card debt. Consolidation also helps you to improve your credit score by allowing you to make your payments against your pending debt amount. Thus, if you want to avoid bankruptcy, choose a debt settlement programme for you.

3. Debt management
In debt management, you approach any credit counselling agency that devises a debt management plan (DMP) for you to come out of your debt. They suggest you ways to keep your monthly expenses minimum and make your bill payments so that you can avoid your bankruptcy. In debt management, efforts are made to minimise interest rates. The agency also tries to get those interested charges waived off that have been charged because of any late payment. With their help, you can easily manage your debt and pay off to your creditors and there is no need to go the bankruptcy way.
4. Payday loan consolidation
If you are finding it difficult to make payments against your payday loans, then you can think the option of payday loan consolidation. In this process, you can consolidate your several payday loans into one easy monthly payment. There are so many payday loan consolidation companies which provide their services online. You can consult one of these companies to choose a good payday loan consolidation programme for you. This way you can replace your several payments every month and get an affordable payment plan instead. This allows you to make payments comfortably every month and you need not to think about bankruptcy.

5. Do it yourself plan
In the Do it yourself (DIY) plan, you try to find a way out of your debt on your own without seeking any professional help. In DIY plan, you need to assess what monthly payment you can be able to make every month comfortably. Then you will have to negotiate with your creditors and have to convince them accepting that minimum amount every month. You will have to plan your budget effectively so that you can keep your daily expenses at a manageable level and have that much extra amount every month to make your monthly payments every month without fail.

Anyone, who is familiar with the adverse impacts of bankruptcy on his or her financial life, will definitely try to find a better debt management scheme, without trying to go for bankruptcy. The abovementioned ways are the best way to help someone come out of his or debt trouble.

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