Debt Consolidation Options – Compare Solutions for Multiple Debts
If you’re dealing with multiple debts, understanding your options is the first step to getting back on track. Debt consolidation broadly means bringing your debts together into a single, more manageable arrangement — but the right solution depends entirely on your circumstances.
At ClearPath Debt Solutions, we specialise in Individual Voluntary Arrangements (IVAs). That’s our focus, and it’s what we’re good at. For clients who need a different route — a Debt Management Plan, a Debt Relief Order, or free debt advice — we’ll always point you in the right direction, whether that’s a trusted partner or a free service.
What Is an IVA?
An Individual Voluntary Arrangement is a formal, legally binding agreement between you and your creditors, supervised by a Licensed Insolvency Practitioner. You make one affordable monthly payment over a set period (usually five to six years), and any remaining qualifying debt is written off at the end.
IVAs work well for people with:
- Unsecured debts of £7,000 or more across two or more creditors
- A regular income that allows for a monthly contribution
- Assets they want to protect, such as a home
- Employment in sectors where bankruptcy would cause professional issues
Other Debt Solutions — We’ll Point You the Right Way
An IVA isn’t right for everyone. If it’s not the best fit for your situation, we won’t try to force it. Instead, we’ll be upfront and refer you to the appropriate service.
Debt Management Plans (DMPs)
A DMP is an informal arrangement where you make reduced payments to your creditors each month through a third-party provider. There’s no legal protection, but it offers flexibility. We don’t personally offer DMPs, but we can point you to reputable providers and free services who do.
Debt Relief Orders (DROs)
A DRO is designed for people with low income, minimal assets, and qualifying debts under £50,000 (updated June 2024). It’s a 12-month breathing space that can lead to a full debt write-off. We don’t handle DROs directly, but we’ll refer you to a service that does.
Free Debt Advice
If you’re not sure which route is right for you, free, impartial advice is available. Organisations like StepChange, National Debtline, and Citizens Advice offer no-cost guidance with no obligation. We’re happy to point you their way if an IVA isn’t the right answer for you.
How We Assess Your Situation
When you contact ClearPath, we take time to understand your full financial picture before making any recommendation:
- Total level of unsecured debt and number of creditors
- Your monthly income and essential outgoings
- Whether you own property and what equity you hold
- Your employment type and any professional restrictions
- Your longer-term goals and priorities
If an IVA is the right fit, we’ll walk you through the process from start to finish. If it’s not, we’ll tell you honestly and make sure you know where to go instead.
Why IVAs Work for the Right Person
Legal Protection from Day One
Once an IVA is in place, creditors cannot chase you, add interest, or take legal action. That protection starts immediately and lasts for the life of the arrangement.
One Affordable Monthly Payment
Instead of juggling multiple creditors, you make a single monthly payment based on what you can genuinely afford. You don’t deal with creditors directly — we handle all of that.
Significant Debt Write-Off
On completion, any remaining qualifying debt is written off. On average, clients write off a substantial portion of their original debt balance.
Keep Your Home
IVAs are specifically designed around unsecured debt. In most cases, your home is protected, though equity may be considered in the final year of the arrangement.
What Happens After You Contact Us
- Free initial call — no obligation, no pressure
- Income and expenditure review — we look at what you can realistically afford
- Clear recommendation — an IVA if it fits, an honest referral if it doesn’t
- Full support throughout — from proposal to completion if you proceed with us
Get in Touch
If you’re struggling with multiple debts and want to know whether an IVA could be the right solution, speak to ClearPath today. We’ll give you a straight answer — not a sales pitch.
Call us or use the form below for a free, confidential conversation with a qualified debt advisor.