There are several debt management solution available to you. Which debt option will apply to you is directly influenced by your current credit rating and the amount of money you owe to your creditors.

Debt Consolidation
Debt consolidation is simply, merging of several unsecured debts (loans) into a single loan with a single monthly repayment. After debt consolidation your monthly repayments should be lower as well as your interest rate. Also, your debt will be much easier to manage as you will have only one single monthly payment instead of several payments.

This option is most effective when consolidating your credit card debts and unsecured personal loans with high interest rates.


Mortgage Refinancing
If you have a mortgage and have large amount of other debts such as credit card debts, store card debts and other personal loans, you could consolidate all those debts into your existing mortgage.

Your total monthly payments will be considerably reduced comparing to before mortgage refinancing. For example your credit card interest rate of 18% per year would now have same low interest rate like your mortgage.


Debt Agreement
A Debt Agreement is a legally binding agreement with your creditors. Usually you pay an agreed monthly sum for a period of 3 to 5 years and the interest on your debts is frozen.

In many cases the money you have to repay using debt agreement will be less than the total amount you owed before the debt agreement. Debt agreement will protect you against legal action by your creditors.

Personal Insolvency Agreement
A Personal Insolvency Agreement is a legally binding agreement with your creditors, a process by which a debtor (you) may make a proposal to their creditors which they consider and vote upon at a formal meeting.

Once it is approved by majority of your creditors Personal Insolvency Agreement will become legally binding on all creditors.

If you have unsecured debts such as credit card debt, store card debt, etc and you cannot pay them and you exceed the Debt Agreement thresholds you should consider a Personal Insolvency Agreement.


Bankruptcy
Bankruptcy is a legal process for individuals who can not pay their debts on time. Bankruptcy usually lasts for 3 years, this term may be extended for up to 8 years. At the end of your bankruptcy you will be released from the debts. Some debts such as child support and fines will be not affected by bankruptcy.

This option should be taken only if all other options are unavailable to you.