Getting help with debt
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If you do not maintain the total contractual repayments to your creditors, this may negatively impact your credit rating.
If you qualify for a debt solution, you must read the small print to understand the Pros and Cons of each option. An advisor will outline if fees are applicable depending on your qualifying debt solution. A debt solution may not be suitable in all circumstances.
Free and impartial money advice is also available from the Money Helper, an organisation set up by the Government for people in debt.
Various debt solutions may be available to provide relief in situations where it is challenging to meet your repayment obligations. These solutions can offer a range of benefits, such as preventing creditor contact such as phone calls, emails, enforcement agents, and freezing interest. If you qualify for a debt solution, you must read the small print to understand the Pros and Cons of each available option.
A Debt Management Plan is an informal repayment agreement between you and your creditors to pay your debts.
Debt management plans are an alternative debt solution to formal arrangements, such as an Individual Voluntary Arrangement or Bankruptcy and are available to residents in the United Kingdom.
Debt management plans are normally used under these circumstances:
An Individual Voluntary Arrangement (IVA) allows you to combine all your repayments into one affordable payment. You make this payment over an agreed period, after which any remaining debt can be written off. The term is usually 60 months (Five years) for tenants and 72 months (Six years) for homeowners. An IVA is typically set up and administered by a qualified Insolvency Practitioner, known as an IP.
An administration order is a repayment plan arranged by the County Court and are are only available in England, Wales and Northern Ireland. If you live in Scotland there are other options available to help you deal with your debts.
To apply for an administration order you must have:
A Debt Relief Order (DRO) is a way of dealing with your debts if you can’t afford to pay them. It means you don’t have to pay certain debts for a specified period (usually 12 months). At the end of the DRO period, the debts included in it will be written off (‘discharged’), and you won’t have to pay them. A DRO is a formal debt solution designed for people with little or no assets and low income. If you don’t own your own home & have little spare income and debts that are less than £30,000 a Debt Relief Order (DRO) could be a way to deal with your debts.
To be eligible for a DRO, you must meet these criteria:
You won’t be eligible if you are involved in bankruptcy proceedings or any other formal insolvency procedure. However, if one of your creditors has asked a court to make you bankrupt, you may ask the creditor for permission to apply for a DRO instead.
There are various options available for people looking to break free of debt; one is bankruptcy. Bankruptcy is a form of insolvency that writes off debts if you struggle to repay them. It’s typically considered a last resort as a suitable legal process if you have little hope of repaying your debts within a reasonable timescale. Nearly all your unsecured debts are written off when you go bankrupt. In some cases, your creditors can choose to make you bankrupt. However, bankruptcy has severe implications and shouldn’t be considered lightly.
To declare bankruptcy in the England and Wales, an individual must make an application to the court and pay a fee. The court will then appoint an official receiver, who will take control of the individual’s assets, sell them to repay creditors, and distribute any remaining funds to the creditors.
Being declared bankrupt can have serious consequences, including the loss of assets, a damaged credit rating, and restrictions on obtaining credit or certain types of employment. However, it may also provide a fresh start for individuals struggling with debt and allow them to move forward with their financial life.
If you declare bankruptcy in the UK, personal assets such as your car and any properties you own will usually be sold to repay your outstanding debts.
Breathing Space is a new debt option that gives you temporary protection from the creditors you owe money to if you’re struggling with debts.
Debt consolidation combines debts, including loans, credit cards, store cards, catalogues, overdrafts, or any other outstanding bills, into one single loan. The aim is to simplify your repayments and reduce the anxiety of managing debt. Banks, credit unions, and instalment loan lenders may offer debt consolidation loans. These loans convert many of your debts into one loan payment, simplifying how many payments you have to make. These offers also might be for lower interest rates than what you’re currently paying.
However, consolidating existing credit commitments should not be considered a cure-all. If appropriately used, restructuring debts through consolidation can help you get debt free faster by reducing the interest burden of existing borrowings and bringing repayments within budget. On the other hand, if there are more serious underlying problems, it may only grant temporary relief before the creditors become unmanageable again.
Simply complete the form to see if you qualify for any of the available debt solutions.
A friendly & experienced advisor from DSD will contact you to discuss yourc ircumstances.
They will explain all your options, so that you can decide which solution works best for you!
Repayments Before & After IVA
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