Debt advice: where in the UK…?

You'll find people in debt pretty much anywhere you go, but the help a debt expert can supply will vary from one country to the next. Even here within our own country, things are done differently in different parts of the UK.

Here's a look at the different debt solutions that a debt expert might help you with throughout the UK.

Debt advice in the UK

Whatever part of the UK you live in, you can always turn to an expert for debt advice, whether you're struggling with your debts or just looking for a better way to repay them.

Three debt solutions that are available all over the UK:

Debt consolidation loan. If you're basically on top of your finances, you could take out a new loan big enough to repay your other debts in one go. You'll have just one debt to repay, and you may be able to arrange a longer repayment period so you can pay it back in smaller monthly instalments (although this will cost more in interest in the long run).

Debt management plan. If you can't repay your unsecured debts as originally agreed, debt management might be the answer: if your lenders agree to it, you could repay your debts in smaller monthly payments - although, again, it can cost you more in interest and can affect your credit rating.

Bankruptcy. If there's no way you can repay what you owe, bankruptcy could actually be the best way forward. It can give you a 'fresh start' without debts, but it'll have a serious impact on your credit rating and can cost you your house and other valuable assets.

Debt advice in Scotland

If you're a resident of Scotland, a debt expert can tell you about the 'Scottish-only' debt solutions that might be able to help you. These solutions simply aren't available to people who live in other parts of the UK.

LILA - the Low Income, Low Asset route into bankruptcy. In Scotland, you can't enter bankruptcy the 'normal' way unless one of your lenders agrees to this - or you can prove 'apparent insolvency'. However, even if that's not the case, you might be able to take the LILA route into bankruptcy as long as you don't have much in the way of income or assets.

DAS - Debt Arrangement Scheme. This is a government-run debt management tool that can deliver lower monthly payments, freeze interest and protect borrowers from any action by their unsecured lenders. Again, it can affect your credit rating, and it's only an option for people who can't afford the payments they originally agreed to make.

Trust Deed. Often described as the Scottish equivalent to an IVA, a Protected Trust Deed usually requires monthly payments for three years and can require homeowners to release any equity in their property. As a form of insolvency, it'll have a serious impact on their credit rating - but as long as they make all the payments, their outstanding unsecured debt will be written off once the Trust Deed reaches a successful conclusion. Only available to people who can't repay their debts.

Debt advice in England & Wales

People who live in England or Wales might be able to benefit from one of the following debt solutions if they can't keep up with their debts.

IVA - Individual Voluntary Arrangement. If you live in England or Wales, an IVA could help if you can't repay your unsecured debts in a reasonable period of time. A lot like a Trust Deed, an IVA lasts for a set period of time (usually five years), may require homeowners to release equity from their property, and can write off outstanding unsecured debt at the end, as long as all has gone as planned. Will affect your credit rating.

DRO - Debt Relief Order. A new form of insolvency (introduced on 6th April 2009) that's only available to people with debts of under £15,000, a disposable income of under £50 per month and no valuable assets. If someone qualifies for a DRO, it can actually write off their debts in one year.

Debt advice in Northern Ireland

This didn't use to be the case, but now that DROs are available in Northern Ireland (as of 30th June 2011), borrowers who live there have the same kind of options as people who live in England or Wales.