Imagine the following scenario: thanks to some windfall, or careful saving for many months, you have managed to pay off all your debt. How does that make you feel? Are you unhappy that you do not know what to do with your money? are you frustrated that you no longer have to fret over unpaid bills that pile up on the kitchen counter, or on the bedside table?

No, if you’re anything like most of us in the UK, you would feel elated, relieved and start wondering how exactly to spend all that extra money!

If your debt is strangling you and you are constantly stressed by missing out on bill payments or how much you interest you are paying on your credit card, you might benefit greatly from debt consolidation.

Many families have up to nine or sometimes even ten credit cards and find it difficult to keep track of multiple credit card payments, bills, loan statements and many more. By pooling all your payments, you could find it much easier to manage your debt, and to pay it off eventually.

What options do I have?

You could apply to get an Individual Voluntary Arrangement through Harrington Brooks, or you could apply for a secured/unsecured loan. Any individual who has difficulty in meeting creditor repayments may apply for an IVA.

Secured loans use assets as collateral to back the loan should the borrower be unable to pay the installments. The interest you would receive could be much lower than that of an unsecured loan, as the lender is aware of the risk you take with your asset, which could be property or a vehicle.

Your good standing with the bank, however, backs unsecured loans, and there is no need for collateral. This could mean the interest rate you receive would be a bit higher than with a secured loan and you would not be able to pay it off as quickly, unless you become very creative in finding money to pay it!

Some types of secured loans could include a home equity loan, a home equity line of credit and cash-out mortgage refinancing. Others may include automobile refinancing, a 401k loan and using your entire life insurance, though this might be too drastic for some to contemplate.

If you do not own any assets that you could trade in, you could still count on the normal personal loans and no interest credit cards. Ensure you get proper advice before you venture through the dark pools of unsecured loans.

Your debt may very well be giving you grey hair, but it need not be that way. Consolidate your debt and you will thank yourself later, when you have managed to pay off everything!

For more information on Individual Voluntary Arrangements (IVAs), secured loans and unsecured loans call Harrington Brooks and discuss your circumstances with an experienced Individual Voluntary Arrangement (IVA) adviser.