If you have a significant debt problem (normally over £20,000) you may be eligible to begin a legal process known as an Individual Voluntary Arrangement.
Payments are usually made over five years, after which the remainder of your debt is written off. During the repayment period, all interest and charges are frozen and you will receive no more correspondence from your creditors. The payments normally work out around 0.80 pence in every pound owed.
Your account is administered by a fully qualified, licensed insolvency practitioner, who takes responsibility for liasing with your creditors and distributing funds on your behalf.
If you own your own home you maybe required to release any equity in your home. This is normally by way of a remortgage or loan secured on it.
Debt Consolidation Explained contains general information only. We strongly advise you to seek qualified professional advice before taking any action.