There is nothing more worrisome than having a massive amount of debt hanging over your head. It is something that takes away your sleep and gives you nothing but anxiety. However, I’d still ask you not to worry as you’re not the only one with unmanageable debt. Many people from around the world are drowning in debt, especially after the post-Covid-19 pandemic.  

Not to forget, the recession is at its all-time high these days. Most businesses are at loss and that is affecting the employment of many. If you’re among such people and have debt worrying you, you’ve come to the right place. To get you back on track, here I have prepared a list of debt plans that can help you manage your debt.  

The Individual Voluntary Arrangement (IVA) 

The individual voluntary arrangement commonly called IVA is a legal agreement between you and your creditor that buys you some extra time and saves you from the aggressive debt collections at the same time. It is a binding agreement; thus, neither you nor your creditor can violate its terms or there shall be a penalty.  

In this way, you get more time to earn money and pay off your debt. As I don’t recommend making debt payments using one’s emergency fund, I suggest you look for some freelance work and make quick cash to get rid of your debt.  

The Debt Snowball Method  

If you have the money to make monthly debt payments but are anxious to take a start, the debt snowball method can help you out. It can provide you with the outline you need to get started. In the Debt Snowball Method, you pay your smallest debt first and then move on to the second smallest.  

In this way, you stay motivated throughout the process. When you get done with one of your debts, you feel a sense of achievement, which motivates you to move further. Such an approach adds discipline to your life in general. It teaches you personal finance skills that go a long way.  


For those who are unable to make debt payments and have nothing in their bank accounts, filing for bankruptcy can help save the day. People are generally pretty reluctant when it comes to declaring bankruptcy. Well, it isn’t as bad as you think.  

Filing for bankruptcy means all your debt will be eliminated except for the tax. In some cases, the tax is eliminated, too, mostly when it is older than three years. In this way, bankruptcy gives you a fresh start. While you may have to lose your credit cards for a while, you can reapply for one after the completion of the process which may take up to six months.  

The Takeaway  

Besides the aforementioned debt plans, you can always consult a financial advisor or your attorney and ask them to settle the debt for you. They can speak to your creditor on your behalf and get the interest fee waived off or stretch the deadline. Just be sure to think twice before you go with any debt plan. Here’s wishing you good luck!