Debt Solutions

We offer advice on a range of different debt management solutions and services.

Taking steps to manage your debt as quickly as possible is critical to prevent the problem from escalating. There are many free debt advice and management services and the number of these has increased dramatically since the Government introduced the concept of the Individual Voluntary Arrangement. A number of these services offer a helpline where free advice can be obtained.

Your debt is the total amount of money that you owe to your creditors. You can have several different types of debt but they generally fit into two categories - secure or unsecure. A secure debt is when you have given some form of collateral towards the amount of money you are lent. A mortgage is a good example of a secured debt as the property itself offers collateral for the lender as they have something to take back should you fall into debt.  If you default on the mortgage then the home is repossessed by the lender to cover the amount of the  debt owing. An unsecured debt means there is no collateral the bank or lender can access in order to pay off the debt. Instead they may take legal action to force repayment.

It is important to act early. As soon as you find yourself unable to meet your payments you should consider taking debt advice. With unsecured debts there are debt collectors who will help a creditor obtain money owed and the courts can also order payment to the lender. Unsecured debts are usually things like credit cards bills, student loans, overdrafts, personal loans, and pay day loans.

Free Debt Management Services

Many consumers have both types of personal debt, with a heavy leaning towards unsecured debts like credit cards bills. Managing debt is something many consumers struggle with themselves until it is too late to save their credit ratings and general finances. Professional advice should be sought as soon as you have trouble making repayments.

The different solutions available include:

• Obtaining a low interest debt consolidation loan
• Entering into a Debt Management Plan
• Entering into an Individual Voluntary Arrangement
• Entering into a Trust Deed
• Declaring yourself bankrupt

Debts can often be lowered or managed by seeking agreements or settlements directly with the lender. A debt management service or company will do this on your behalf but may take a fee or commission for their services. Debt settlements offer the lender the guarantee of at least a partial payment whereas if they do not agree and continue to pursue the full amount they  may never recover the debt if the borrower goes bankrupt.

The starting point to getting your finances in order is to add up exactly what your debts amount to in total. Once you know exactly what you owe, you can move forward, and work out a payment plan that suits your needs. 

The average UK consumer has between £30,000 and £50,000 of debt, unless they have a mortgage which can add up to over £200,000 of debt to this. Once you know how much debt you have, you can examine how much money you make in a year and then per month and compare this with a calculation of your monthly expenses. There are many free online expenses calculators that you can use to assist you.

We will be developing this page of the website further soon to provide a free debt calculator and more advice on managing your expenses.  Check back soon for further information.