Citizens Advice on gathering information: “Find any letters and emails you’ve had about your debts, along with the credit agreements you’ve signed.
Money Advice Service notes that the risks of not prioritising debts include the danger of losing your home, the risk of receiving a court summons, being visited by bailiffs and bankruptcy.
Gov.uk says that your options for paying debts include a Debt Management Plan (DMP) which is essentially an agreement with creditors to pay debts when you may only be able to pay off a small amount per month.
While an IVA also has disadvantages – you are placed on the Insolvency Register, you agree to pay into it for a set period of years, and your credit rating will be affected – it usually involves a percentage of the debt being written off so once your agreement is complete you can rest assured you will be free of any unsecured debts.
