MONEY By Staff Curator / July 1, 2016 How have you decided to approach your debt? BY IRMA HUNKELER (lifehack.org) – Debt is a big problem all over the world. In the UK, the average debt per adult currently standing at a massive £29,210. In the US, the average household with debt carries $15,762 in credit card debt and $130,922 in total debt. Rising debt, plus a drop in income and savings, means 2016 is a rather uncertain one when it comes to our finances. If you’re in serious debt then a debt solution could be the way out. For some people, bankruptcy isn’t the preferred option because this route can cause long-term problems, such as issues accessing credit, losing property and getting work. Of course, seeking out a debt solution requires a lot of consideration, so always take debt advice before you do anything. This guide outlines some of the common alternatives to bankruptcy and aims to help you work out which is the best option for you. 1. Debt Management Plan A debt management plan is an informal repayment agreement between you and your creditors. You will agree a monthly sum and pay it back. Typically, a debt management company will manage such a plan for you. Find out more about debt management plans on this government website. 2. Individual Voluntary Arrangement An individual voluntary arrangement, or IVA, is a formal agreement between you and your creditors. This means it is approved by the court. With an IVA, you would agree to pay off your debts over a set period of time. An IVA needs to be set up by a lawyer or an accountant. 3. Debt Relief Order Debt relief orders are designed for people on low income with relatively low levels of debt (typically, less than £20,000). Under a debt relief order, your debt repayments and interest are frozen for 12 months. After this time, if your financial situation hasn’t changed, your debts are written off. 4. Trust Deed Available to residents of Scotland, a trust deed is similar to an Individual Voluntary Arrangement (explained below). It’s effectively a formal repayment agreement between you and your creditors. A Scottish trust deed would see you transfer some or all of your assets (cash, property) to a trustee who would manage them for your creditors. You would pay a single monthly payment to… Read the complete article here.