In 2004, according to the Bank of England, the total borrowing growth raised household debt to 140% of aggregate income, above levels in most large European countries, as well as in the United States. Additionally, total credit card debt in April 2005 was ¢G55.03bn. Therefore, finding viable solutions to resolving personal indebtedness is a priority for many people in the U.K. today.

The organization Clear Debt was launched in 2005 to give free advice about debt to people and to clarify the process involved with obtaining Involuntary Arrangements (IVA) to clear up individual insolvency. By negotiating an IVA, a person's debts can be reduced and cut in half, or even reduced 75% or more. Interest paid on the debts is immediately frozen, threats to your home are removed and creditor action is stopped. An IVA is repaid over a period of sixty months and at the end of all payments, the debts are cleared, no matter what percentage of the original debt was repaid. An annual review of a person's financial status is done during the period of the IVA. Clear Debt specializes in impartial advice and handling IVAs and does not offer loans, engage in telesales, pass or sell personal information to other entities or provide debt management. A legally binding agreement is formulated that provides greater security, and in the majority of circumstances, better terms than can be achieved with a debt management plan.

Located in Manchester, Clear Debt assists people in who are in deep debt in England and Wales. If ¢G7,500 or more is owed, an IVA can be arranged that incorporates the charges of Clear Debt into an affordable monthly payment to repay all personal debt. A single named case administrator is appointed to manage the IVA and assists the client through the entire process. Clear Debt also provides advice and resources about bankruptcy, debt consolidation and debt management and gives impartial help to send a client in the right direction to pursue other solutions that may be available.

Clear Debt is unique because it is the only fully interactive website of its kind. A free tool called the ClearDebt Analyser enables users to input their personal debt details to submit their application. The advantage such as system is cost savings and increased efficiency because the customer enters their own information. An easy to use Debt Repayment Calculator illustrates to a customer how their outstanding debt can be cleared by showing the effect of a change in APR on debts over time. Furthermore, there is a Clear Debt two-minute quick financial health check that can give a potential client, for free, a good idea of how serious (or not) their situation is and the options that are open to the person. There are also links to helpful articles and current news about debt management on the Clear Debt website to educate the indebted individual.

Obtaining pertinent information from Clear Debt is free, easy and can be done over the web, on the telephone, by fax or by correspondence address. It is alarming to consider that the average debt in the U.K. Is ¢G26,716 and the average net monthly income is ¢G1,357. Thus, it is clearly a priority to find out the alternatives to resolving outstanding debt in a realistic way. Clear Debt gives people advice and direction.