When it comes to serious debts over £15,000, you’re often only left with two options: an IVA or Bankruptcy. It’s not usually advised to consolidate debts that large, and debt management can also prove to be an unrealistic option. Choosing the wrong debt solution for serious debt can make your debt harder to pay off, only adding fees and charges to your mounting debt.

For extremely large debts you may never be able to pay off, you may need an option like an IVA or bankruptcy that can actually remove some of your debt.

When it comes to debt solutions, bankruptcy is considered the last option once it’s deemed that no other debt solution is possible. An IVA (Individual Voluntary Arrangement) is usually preferable if bankruptcy can be avoided.

IVAs offer people with larger debts a way to repay back what they can afford. It’s a contract with your creditors in which you agree to pay back a reduced amount of your debt over a five-year period. When an IVA is completed successfully you have the opportunity to write off a percentage of your debt.

Unlike bankruptcy, you won’t lose control of your assets with an IVA, nor will you risk losing your house and have to face the social stigma that comes with bankruptcy.

Regardless of which solution you may think sounds better, it’s best to get professional advice on your financial situation before you decide what course of action to take, as the consequences of choosing the wrong debt solution can leave you in a worse situation financially.