Join in the TayAds.com Community. Share your advice on debt. Find more help on Debt Management with Google.

Just because you have a poor credit report doesn’t mean you won’t be able to get credit. Creditors set their own credit-granting standards and not all of them look at your credit history the same way. Some may look only at more recent years to evaluate you for credit, and they may grant credit if your bill-paying history has improved. It may be worthwhile to contact creditors informally to discuss their credit standards.

If you’re not disciplined enough to create a workable budget and stick to it, work out a repayment plan with your creditors, or keep track of mounting bills, consider contacting a credit counselling organization. Many credit counselling organizations are non-profit and work with you to solve your financial problems. But not all are reputable. For example, just because an organization says it’s “non-profit,” there’s no guarantee that its services are free, affordable, or even legitimate. In fact, some credit counselling organizations charge high fees, or hide their fees by pressuring consumers to make “voluntary” contributions that only cause more debt.

Most credit counsellors offer services through local offices, the Internet, or on the telephone. If possible, find an organization that offers in-person counselling. Your financial institution, local consumer protection agency, and friends and family also may be good sources of information and referrals.

Reputable credit counselling organizations can advise you on managing your money and debts, help you develop a budget, and offer free educational materials and workshops. Their counsellors are certified and trained in the areas of consumer credit, money and debt management, and budgeting. Counsellors discuss your entire financial situation with you, and help you develop a personalized plan to solve your money problems. An initial counselling session typically lasts an hour, with an offer of follow-up sessions.

IVA's. Individual Voluntary Arrangement. (England Only)
Simply, an IVA is an arrangement between the debtor and his/her creditors to repay a percentage of the debt over the life of the IVA, usually 5 years. This is to be done under the watchful eye of an insolvency practitioner. At the end of the IVA any outstanding debt is usually written off.

It should be borne in mind that IVAs, just like bankruptcy, are restrictive. It is not simply a matter of setting up an IVA, paying off a percentage of your debt and just walking away from the rest of what you owe. There are some implications on your current and future finances which should be considered before making a decision.