You will be contacted by a debt expert to go through your situation
The one thing you should never do when you get into debt is ignore the problem. You can be certain that if you do this the situation will only get worse, so you have made a good start by searching for help with your financial problems. Debt management is the most popular option in the UK for dealing with mounting debt problems. This site is here to help you understand how debt management works and where you can go for honest and effective help and advice.
There are specialist debt companies throughout the United Kingdom, who can provide a range of solutions to people in England, Scotland, Wales and Northern Ireland. All the leading organisations offer nationwide services, so it does not matter where you live or where in the UK your debt advisor is based. Applying for help is now a simple online process, followed by a telephone call to get a few more details. When they have a full understanding of your situation, the advisor will then be able to make a proposal for what type of solution will be best for your particular circumstances.
The main option that is provided is a debt management plan (DMP) which is a way of changing the arrangements for paying back what you owe, so that it becomes more affordable for you. What you end up with is making one monthly payment to the UK debt management company you have chosen, instead of paying all your creditors separately. The amount you pay will be less and it is much easier to keep on top of. You also benefit from not having to deal with all your creditors constantly bothering you for money.
The plan is achieved by the advisor negotiating with each of your creditors in turn to come to a new agreement for repaying your debt. Typically this will mean finding ways to reduce the amount you pay by cutting or freezing interest charges and other fees and sometimes even writing off certain charges. By bringing the cost of your debt under control they can build it into a plan whereby you just make one payment to them and they share it out among your creditors.
Debt management plans will only work if you have a certain amount of unsecured debt to a few different creditors. The exact requirements vary depending which company you work with, but in general your debts will need to be at least a couple of thousand pounds and to at least two or more creditors. Other than that, you will need to be over eighteen and resident in the UK. For the plan to be viable you will need to show that you have enough money to manage the monthly payment that will be required. So a steady source of income is necessary too.
You have plenty of choice when it comes to finding companies that offer debt management in the UK, but it is fair to say that they are not all to be recommended. Anyone looking for such help needs to understand that they should be careful about who they talk to and which adverts they respond to, because there are many companies that will either provide inappropriate payment plans or charge far more for their services than they ought to.
There are still lots of organisations that will give you sound advice and offer plans that will get your debts quickly under control, but you just need to understand how to find these and avoid the other sort. One good starting point for identifying the most reputable companies is to look for DEMSA membership. This is the Debt Management Standards Association, which is approved by the Office of Fair Trading (OFT). Any company who has this membership must follow a lot of strict guidance about how they conduct their business. This regulates the way they conduct all aspects of their operation, including having to follow the Debt Management Guidance Notes set out by the OFT.
You can apply to our DEMSA regulated top recommendation for UK debt management companies, NoDebtNow, using the Online Form at the bottom of this page, or you can view the other recommended companies below.
If you have a steady income but your debts are so great that you just cannot keep up with them, you may qualify for an Individual Voluntary Arrangement, or IVA. This is different to a debt management plan in that instead of finding a new way to repay your debts in full, you pay back what you can afford for a fixed period, then the rest is written off.
IVAs were set up to provide an alternative to bankruptcy so they only work if your situation is serious enough for you to have to consider this option. For creditors to agree to writing off a large part of what you owe them, they need to know that the only alternative would be bankruptcy, which could leave them with even less.
You will normally need to show that you are struggling to repay at least £15,000 worth of unsecured debts to a few different creditors and that you have a steady source of income too. In the right circumstances it is possible to write off over half of your debts this way, and for some people, up to as much as three quarters.
Any of the recommended debt management companies in the UK can provide IVAs as well as standard payment plans. IVAs are available in England, Wales and Northern Ireland, but for people in Scotland there is a solution known as a Trust Deed. This is used in place of an IVA to do a very similar job, but it has certain advantages over an IVA.
For people facing very serious debts, an IVA provides an alternative to bankruptcy which is better in various respects. One of the main concerns about bankruptcy is the stigma because everyone knows about it. With an IVA you do not need to advertise it, so no-one needs to know about it if you do not want them to. The other main issues with becoming bankrupt are the possible effects on your career and the threat to your home if you are a homeowner. There is no restriction under an IVA about which jobs you can do or positions you can hold and you are much less likely to lose your home. You do not lose all control over your assets in the way that you do with bankruptcy.
This company actually work with many other debt management companies in the UK to offer a wide range of services to suit all sorts of different situations. The fact that they can provide everything from IVAs to loans through a range of partners makes them a good choice for finding a solution to fit almost any circumstances.
To see if you can get help, just fill out the Online Form at the bottom of this page.
Another well proven organisation with a good track record or providing sound advice and who are able to provide a very wide choice of debt help solutions. You can have an advisor call you back by simply visiting their website and completing the form on the right that says 'Debt Test'.
An advisor will contact you to discuss whether a debt management plan or other option may be appropriate for your situation.
Your home may be repossessed if you do not keep up repayments on a mortgage, loan or any other debt secured on it. Think carefully before securing other debts against your home.
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