Make a debt plan to avoid bankruptcy

Debt management can be the answer if it is serious but is not always the only debt help solution available. Three bits of debt advice and tips to avoid being bankrupt are as follows. Number one, scrimp and save every penny, sell things you don’t need at car boots sales or on ebay. Don’t buy anything that you don’t actually desperately need and then make sure it’s the best deal available to you. Why not try shopping around online to get a discount on your purchase. You can save anywhere from 5-50% off a high street price doing this – you will surprised!

Look at ways to increase your income, take another part time job if you have to get your of the rut. There are numerous freelance websites available, with copywriting, data entry and other ‘work from home’ type jobs available. Alternatively, look in your local newspaper or on online job boards to see if you could get a few hours extra work per week – the money quickly adds up.

Two, make a get out of debt plan and find out where you can get the cheapest borrowing compared with what you have already got. Change credit cards, loans, mortgages etc if you have to. Find the cheapest APR possible. This is easily achieved with all the money comparison sites out there now. By saving a few % here and there you could cut hundreds off your yearly bills in an instant!

Three, consider an IVA. I’m not exactly sure how these work, but there are adverts for them everywhere and it would seem to be an alternative. From what I can gather is that you make a voluntary agreement to pay off your debts but don’t have to pay all of it based on the principle they would get nothing in the event of bankruptcy. Usually, these are for people in severe levels of personal debt.