4 ways to write off debt

Debt is something that many of us have in our lives. Many of us can manage it in a way that has a minimal impact on our lives (and our finances for that matter) but there are also people who find it hard to make sure that they pay back their debt; as well as manage to live every single day.

Once you find yourself in debt, then it can feel as if it is impossible to get yourself out of the mess. You fall further and further behind and you find yourself in more and more debt over a longer period of time.

The good news for many of us is that there are things thing you can do to make sure that you pay off your debt and get yourself and your finances back on track.

An Individual Voluntary Arrangement (IVA)

If you have debt that you are finding hard to pay off at the usual rate; then you may want to take a look at whether an IVA is going to be the right choice for you. The idea of an IVA is that it allows you to pay back what you can afford over a set period of time. This period of time will usually be around 5 to 6 years and anything that you haven’t paid off at the end of the period will be written off.

An IVA is a legally binding agreement; which means that no matter what happens, your creditors and yourself cannot get out of the plan and you will need to make sure that you pay it back.

A debt management plan

A DMP is another way to pay off any outstanding debt that you may have. It looks at the debt that you have and puts together a way that you can pay them back at an acceptable and affordable rate. The provider of your DMP will help you to look at the payments that you need to make and them speak to your creditors about it.

You will often find that a DMP is a good idea if you are someone who has non-priority debts such as store cards, credit cards, personal loans and overdrafts.

A debt relief order

If you are someone who is on a low income, someone who has very few assets, then you may be able to ask for a DRO. The idea of DRO is that it will freeze the current debt that you have for a year. If, after that year is up, your circumstances haven’t changed, and you are still in a low-income position and unable to pay back your debt, then your debts will be written off completely. A debt charity such as StepChange may be able to help you with asking for a DRO.


Those who have debt issues can find that no matter what they do, they simply cannot make the payments back and get themselves back in the black. Perhaps they’re chased by multiple debt collectors such as CCS Collect. If this is the case, then they may end up having no other choice but to apply for bankruptcy.

The idea of bankruptcy is that it allows you to make a fresh start with your debts. If you prove that you owe debts, then they will be paid off on your behalf. If you do apply for bankruptcy then any assets that you have will be taken from you and used to pay off the debts.

As you can see, debt is something that you can take care of. There are steps out there that you can take to put yourself back on the right path and ensure that you make sure that your finances are as they should be.

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