I need some advice on how to get out of the debt I am in. I owe £35,000 due to my business failing, and another £10,000 in personal debts. I am the Director of the company and guaranteed all the business loans. I am back trading, but not at the level I was prior to Covid.
I am just unsure what to do?
Any advice would be helpful.
I can understand being overwhelmed by the accounts you owe, and it can paralyse us as to knowing what our options are and what we can do.
There are many ways to get out of debt, and which is best for you will depend on a few factors:
- How much in total you owe? Which you already know this figure.
- Do you have any assets, such as property, or does the business have any assets?
- Are the accounts in just your name, or you as a guarantor? Which you state they are.
- How much can you afford to comfortably pay towards the accounts each month after you living expenses?
The answers to these question will help direct you as to which get out of debt option is best for you.
If you cannot afford to pay anything, or very little each month, a Token Payment Plan or a Debt Management Plan may be a short-term solution. This if you feel your business will increase and you will have more earnings.
If the future is not looking bright, then it may be Bankruptcy or possibly an IVA/Individual Voluntary Arrangement could be a solution. These can depend on if you have any assets, such as property.
Get back to me and we can look closer at your situation.