Just a few simple questions are all you need to answer and you could be one step closer to regaining control of your debts.
Depending upon your eligibility, we could help you to:
• Set up a legally binding agreement with your creditors
• Potentially write off some of your unsecured debts
• Have one affordable monthly payment
• Freeze charges and interest payments
• Stop creditors chasing you
Whether you’re looking for free debt advice without obligation, or a solution to becoming debt free, Debt Advice is here to help.
It only takes a minute…
Just a few simple questions are all you need to answer and you could be one step closer to regaining control of your debts.
Depending upon your eligibility, we could help you to:
• Set up you set up a legally binding agreement with your creditors
• Write off debts some of your unsecured debts
• Have one affordable monthly payment
• Freeze charges and interest payments
• Stop creditors chasing you
Whether you’re looking for free debt advice without obligation, or a solution to become debt-free Debt Advice is here to help.
It only takes a minuite…
Starting to deal with your debts and taking control of your finances will give you peace of mind.
Contact Debt Advice now to get a plan that works for you.
We offer a confidential, specialist service, with expert non-judgemental advisors. Our expert advisors can provide you with options on how to take control of your money worries. You can chat to us safe in the knowledge that all advice is confidential and free.
We will review your circumstances to support you like: your income, outgoings, total debt level and any other relevant details. We discuss all options available to you and advise you based on your personal circumstances.
This allows you to make an informed decision on how you wish to address your debts and regain control over your finances.
We understand that everyone’s personal financial situation is unique and finding the best solution to manage your debts can be confusing.
Do you have debt worries? Being in debt can be incredibly stressful, but you’re not alone and Debt Advice can help you find a way forward. Millions of people struggle to manage their finances, not realising that debt support is available.
At Debt Advice we are here to help. We can guide you through available options to understand your personal financial situation and the best solution for you. You can chat with us safe in the knowledge that all advice is free and confidential. By understanding what you owe we can help you make an informed choice about the best plan to get back control and manage your money.
Although our services are free to use, we’ll be paid for introducing you to a third-party provider.
An IVA, or to give the full title an Individual Voluntary Arrangement, is a formal arrangement between you and your creditors that allows you to pay back what you can afford towards your outstanding debts, by means of one affordable monthly payment. An IVA can be flexible considering each individual’s personal circumstances. Your IVA will take into account your capital, income, third party payments, or a combination of these. An IVA usually lasts for 5 years, and at the end of the agreement, any remaining debts are written off.
It’s most appropriate for individuals who have debts of more than £6,000. If your missing payments, you find interest charges increasing, and your debts are spiralling out of control, then an IVA may be the solution to bring your money worries back under control.
| Advantages | Disadvantages |
|---|---|
| An IVA is a powerful alternative to bankruptcy with the capacity to protect assets and incomes that might be otherwise vulnerable under the bankruptcy process | Your credit rating will be impacted for 6 years.
Your IVA is entered on a public register |
| An IVA forces creditors to stop any recovery action from being taken against you | Your insolvency practitioner may charge you for preparing your IVA. |
| Your insolvency practitioner will prepare your proposal with you | If your circumstances change and you can afford to increase your payments into the IVA you are legally bound to do so. |
| One single payment each month or quarter is all that’s required and you only pay what you can afford | If your IVA fails, you may be made bankrupt |
| On completion of the IVA, the balance of what you owe your creditors is written off | If there is some equity (value) in your home after taking account of the mortgage(s) on it, you will probably have to pay for your share, usually in the fifth year of your IVA, by remortgaging the property |
| If your IVA is accepted, any creditors who vote against your proposal are still bound by it | Creditors may not approve the arrangement |
| Provides peace of mind as you will dealing with your debts in a responsible way with an affordable plan that’s right for you | Your creditors expect you to manage your finances carefully and remain within a realistic household budget. You can not have a bank account with an overdraft or credit cards result, You will be allowed modest living expenses as part of your IVA budget |
Don’t think you can afford to repay everything you owe? Then a trust deed could help you to deal with your debts. Trust deed are only available if you live in Scotland and is a legally binding arrangement and covers unsecured debts only, such as credit cards and personal loans. It may be a possible solution to your debts. When you sign a Trust Deed you agree to repay as much as you can towards your unsecured debts – normally for four years – and at the end of that time, any remaining unsecured debt is written off. Throughout your trust deed, you’ll also be “protected” against further action from your lenders included in the Trust Deed agreement. Being “protected’, means that creditors cannot hassle and chase you for the money or add any interest or charges to your existing debts. They are also unable to take court action as long as you keep up with the payments.
| Advantages | Disadvantages |
|---|---|
| Reduce Your Hassle from creditors | Your credit rating will be affected |
| Repayments to your creditors over 4 years | Only your unsecured debts are covered |
| Calculated so only your disposable income will be used to pay creditors | You may have to remortgage or sell |
| Flexibility to negotiate terms | The Trust Deed will be advertised in the local press. However this will only be seen if someone is specifically looking for the advert |
| If you’re a business you can continue trading | Creditors will be able to pursue you for any new debts |
| Debt becomes more manageable as you make only one monthly payment, which is affordable and frozen. | Creditors may not approve the trust deed |
| A Trust Deed remains on your credit file for six years |
In some circumstances your financial situation may mean there is no viable way to pay what you owe. This may be the result of a change in your job situation or your debts are just too great to pay back. So sometimes declaring yourself bankrupt may be the option for dealing with debts that can not be managed.
Bankruptcy is a form of insolvency: it’s a legal process that allocates your assets fairly among your creditors, so if you have few assets and large debts it may be an option for you. Bankruptcy also protects you from further legal action. Once the bankruptcy is completed , which generally takes one year, most of your outstanding debts are written off and you can make a fresh start.
| Advantages | Disadvantages |
|---|---|
| The debts that the bankruptcy covers won’t have to be paid back | To apply to go bankrupt you’ll need to pay a £680 fee. Other disadvantages of going bankrupt include: |
| Takes the pressure off you as creditors can’t take further action unless the debts are secured on your home or other property | Your employment could be affected |
| It allows you to make a fresh start after a year | You will remain liable to pay certain debts |
| You may be able to avoid having to sell your home if your spouse, partner or a relative can buy your share of its value after any debts secured on it have been paid | Your business will most likely be closed |
| At the end of the Bankruptcy, the balance of what you owe your creditors is written off | Your bankruptcy is advertised and entered on a public register |
| Your credit file will be impacted for a period of 6 years |
A Debt Management Plan is an agreement between you and your creditors to pay all of your debts. A Debt Management plan is a way to take control of your debts and can help you reduce your monthly outgoings to make repayments more affordable. A Debt Management Plan can provide:
Debt Advice will discuss details about your financial situation, for example your assets, debts, income and creditors. Together we will agree what you can afford and when you want to pay . The Debt Management Plan is set up for you by a Debt Management Company which will contact your creditors and asks them to agree to the plan, so you take control of your debts.
Debt Management Plans can only be used to pay ‘unsecured’ debts, for example debts that have not been guaranteed against your property.
| Advantages | Disadvantages |
|---|---|
| Making one regular monthly payment allows you better control over your finances | You remain liable to pay your debts until they are paid in full |
| The debt management company will help you prepare your plan, including agreeing the level of your household and personal spending based on guidelines, which can then be used to put your case to the creditors | The debt management company can’t force creditors to accept your proposal or freeze interest. A plan is not binding on creditors who refuse to take part in it, but they can’t refuse to accept any payments made to them |
| The debt management company negotiates with creditors on your behalf. Because they are skilled in these negotiations creditors are more likely to accept the plan and freeze interest than if you as an individual try to negotiate | Creditors could still take enforcement action against you, for example by getting a county court judgment and then an order, which creates a charge on your home*, even if you are keeping up your payments under the plan, unless they agree not to do so |
| You may be able to vary your payments if your circumstances change | You may not be able to make reduced offers if your circumstances worsen and you can no longer afford your agreed monthly payments |
| A Debt Management Plan is seen as a fair way to manage your debts and credible with creditors | Having a charge on your home means that if you don’t repay the debt, the creditor has a claim on the proceeds if the property is sold |
| Within 5 working days your monthly payment should be passed on to creditors | Your credit file will be affected for a period of 6 years |
| Creditors may be prepared to write off the balance of what you owe after a period of time if: you have shown that you have made every effort to repay them as much as you can; and you have maintained regular payments to the debt management company | A Debt Management plan may last for several years. However, sometimes creditors may only agree to freeze interest for only a short time. If interest and charges are not frozen for the full term of the plan, you may end up paying more money under the plan than the original amount of your debts. And the lifetime of the plan may be extended. |
| Some debt management companies do not charge you a fee |
A Debt Relief Order, also known as a DRO, is a way for you to deal with your debts, if you can’t afford to pay them. It also means you don’t have to pay certain kinds of debt for a specified period, which is usually a year. At the end of the DRO timeframe the debts which are included in the DRO will be written off. If however your financial circumstances change, and you are able to pay some or all of your debts, you may need to arrange to pay your creditors
To be eligible for a DRO:
| Advantages | Disadvantages |
|---|---|
| Your debts will be written off at the end of the DRO. There are a few exceptions, which are explained in disadvantages | Your DRO is entered on a public register |
| None of the creditors listed in the DRO application can take further action against you without the court’s permission | You can’t have a DRO if you have an existing bankruptcy order, you have had a DRO in the last 6 years have an IVA or are subject to bankruptcy restrictions. |
| It allows you to make a fresh start after 1 year | You won’t be able to have a DRO if you own a house, even if it has no equity (value) |
| The fee (£90) is affordable and can be paid in installments but the fee must be paid before the application can be made | Your credit file will be affected for a period of 6 years. |
| You will keep your assets and a vehicle as detailed above. | You will remain liable to pay certain debts – in particular: child maintenance, student loans, fines, budgeting loans and crisis loans owed to the Social Fund, any debts you incur after the DRO is granted |
| The approved intermediary ensures that you are given appropriate advice and that you fit the criteria for a DRO | Your employment may be affected |
| Your DRO could be revoked (withdrawn) if you don’t co-operate with the official receiver during the year your DRO is in force | |
| You can’t act as a director of a company or be involved in its management unless the court agrees | |
| You will be committing an offence if you get credit of £500 or more without disclosing that you are subject to a DRO | |
| You may have a debt relief restrictions order* made against you for 2 to 15 years if you acted irresponsibly, recklessly or dishonestly | |
Firstly, we will gather information from you about your debts, income, expenditure and any assets that you may have. We can assist you with any unsecured debt, which means credit cards, personal loans, overdrafts, store cards, and payday loans. At Debt Advice we can advise about solutions available for almost all financial liabilities.
Secondly, we work with leading debt advice partners and have a wealth of knowledge to find the right debt solution which will work for you.
Debt Advice aims to provide a personalised and sustainable debt solution with the potential to write off the unsecured debt which you cannot afford.
One of the options to get control of your debt is an IVA, at Debt Advice we can work with you to figure out if this is the best way forward.
An IVA or individual voluntary arrangement is a formal and legally binding agreement between you and your creditors to pay back your debts over a period of time. Once approved your creditors cannt take any further action, An IVA can be flexible to suit your needs and we will work together to evaluate if this is the best option. An IVA could allow you to make one monthly at an amount you can reasonably afford. Your monthly payments will usually last 5 or 6 years. At the end of the plan if you have not paid off the debt, you won’t need to pay the rest. Once the IVA is completed you can start to build your credit score back up.
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Debt Advice by WRS Limited is a limited company registered in England and Wales.
Registered number *******
Registered Office:
1 St James’s Square,
Manchester,
M2 6DN.
Debt Advice by WRS Limted is registered under the Data Protection Act [2018] with the Information Commissioner’s Office (the, “ICO”): Registration Number *******
DebtAdvice.co.uk is an independent website created to help users find the best possible Options for their circumstances. We work with FCA authorised companies and Insolvency Practitioners in the UK. Our service is 100% free to use and you are under no obligation to accept any of the plans you receive for debt solutions, including advice on Debt Management, Individual Voluntary Arrangements, Trust Deeds, Bankruptcy, Debt Relief Orders, Budgeting and Finance Advice and Full & Final Debt Settlements.
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You can find out more about managing your money and getting free debt advice, by visiting Money Helper a government backed service set up to help people manage their money.
