If you have managed to get into financial difficulties, you'll almost certainly be looking for a way out. Whether you've recently got into debt, or your bad debts have been building up unpaid for some time, you can find a way to sort out your finances. There are several solutions available and, whilst not every option is suitable for everyone, you should be able to find something that suits your circumstances.

Legal solutions to financial difficulties

Processes such as voluntary bankruptcy and Individual Voluntary Arrangements (IVAs) are formal legal solutions that bind you to an agreement with your lender or lenders. In the right situation, these processes can be very useful, particularly if you have built up considerable debts that you're going to have trouble paying. Bankruptcy may allow you to sort out your debts within a year, but in order to do that, you have to hand control of your finances over to a court-appointed trustee. They may sell your home or take a percentage of your earnings in order to pay off the lenders. An IVA offers a less drastic option, but ties you into making monthly payments for 5 years, during which time you will not be allowed to borrow any further money.

Payment solutions to financial difficulties

The alternative to a legal route is to look for ways that you can make payments to reduce your debts or clear them completely. You can do this by looking at your current expenditure and seeing if there are any ways you can increase your income or cut your spending. If you can find some extra cash this way each month, you may be able to start paying off your debts, or negotiate a lower monthly payment with your lender.

You could also see if there is a way you could pay your debts off completely. If you are a homeowner, you could do this by selling your property for cash. You can then use this cash to pay off your debts completely, leaving you free to start again and hopefully to maintain a debt-free life from then on.

If you need to sell your property to get out of financial difficulty, contact us at Discount Property Auction. We're committed to helping you, whatever your circumstances. If you want to sell your home, you can use our dedicated online auction facility, which allows you to upload your property yourself and put it in front of genuine, interested buyers. Call us now on 0800 1313 999 or email admin@discountpropertyauction.co.uk to arrange a valuation today.