Online Debt Advice
Debt advice enquiries have risen dramatically over the past 18 months...
Money Advice Direct online debt advice has revealed that the average debt for a consumer searching online for debt advice is over £20,000. The online debt advice team also state that the level of debt advice enquiries has risen by over 200% on the past 18 months.
The increasing number of consumers looking online for debt advice is being linked to the worsening economy and also the lack of free and accessible debt advice on offer in the UK.
- Over half of all people in debt seek debt advice internet online.
- Issues surrounding security of information and advice to guide and help consumers avoid becoming a victim of online banking fraud are reducing due to secure web sites, data protection regulation and internet security.
Online debt advice from Money Advice Direct is a safe and secure way for consumers to access help on financial problems, and the chances of becoming a debt free (subject to terms and conditions) are very high due to the wide variety of debt solutions on offer from the public and advice sector.
The advice team at Money Advice Direct state that, online debt advice has changed the way those in debt seek advice. The fact that the number of people getting debt advice online at www.insolvencyhelpline.co.uk now exceeds 75,000 per month, is testament to how easy, convenient and safe this way of receiving debt advice is. As the economy worsens, this trend will continue.
Online Personal debt options available in the UK:-
Individual Voluntary Arrangements (IVA) to clear personal debt over £15,000, subject to creditors approval.
An IVA is a formal alternative for individuals wishing to avoid bankruptcy. The IVA was established by the Insolvency Act 1986 and constitutes a formal repayment proposal presented to a debtor's creditors via an Insolvency Practitioner. Usually (but not necessarily) the IVA compromises only the claims of unsecured creditors, leaving the rights of secured creditors largely unchanged. An IVA is ideal if you have been refused loans to clear personal debt.
Debt management plans to manage personal debt over £2000
The advantages of using a Debt Management Plan to clear personal debt are that:
- You make only one payment under personal debt management. The monthly amount is divided fairly between all your creditors
- You don’t have to contact your creditors yourself, under debt management, this is done for you.
- Debt management is a strong alternative if refused a loan in the UK.
- Please note that for consumers considering a Debt Management Plan; whilst initial advice is free, fees may be payable to the debt management plan provider. Please beware of any commercial service that states or implies that the service is free and fails to explain that while there may be no charge for the initial advice, charges may be incurred at a later date.
- Please note that for consumers considering a Debt Management Plan (DMP), although the consumer may become debt free (subject to terms and conditions) at the end of the DMP period, if a default notice has been issued the effect is likely to remain on the consumer's credit profile for a lengthy time.
- Please note that for consumers considering a Debt Management Plan (DMP), if interest and charges continue to apply then there will be an increase in the total amount of debt to be repaid and that due to lower monthly payments it is very likely that the debt will have to be repaid over a longer period of time.
Trust Deeds to clear personal debt in Scotland over £8,000, subject to creditors approval.
The Protected Trust Deed (PTD) is a formal arrangement that is used in Scotland where a consumer debtor grants a ‘deed’ in favour of the trustee which transfers their assets to the trustee for the benefit of creditors.
Please note that for consumers considering an Individual Voluntary Arrangement (IVA) or Protected Trust Deed (PTD); in most cases of an IVA/PTD creditors will be prepared to write off no more than 70% of a debt and in some cases 60%. Also note all customers can achieve the stated 'write-off' because every case considered is different.
Bankruptcy to clear personal debt over £750
Bankruptcy is an option that often has to be considered when an individual cannot clear their personal debts as they fall due. A first time bankrupt with debts will generally receive their discharge one year after the date of the bankruptcy order. If you have been refused loans to clear debt then bankruptcy may be the only option.
The future of Online Debt Advice
In the future Money Advice Direct expect more and more people to use online debt advice to become debt free (subject to terms and conditions), particularly in light of the procedures such IVA, Bankruptcy and Debt Management. This enables customers to write off debts over the within hours, not days or weeks.
However, Money Advice Direct strongly urge those seeking debt advice online to make sure they remain wary of online scams such as unsolicited emails claiming to write off debts, and to only use a fully protected PC with regularly updated anti-virus software and a firewall installed and switched on.
All services provided by Money Advice Direct to individuals and households are under our 'Best Advice' guidelines. To contact an advisor please call FREEPHONE 0800 074 6918. Alternatively, complete an online debt advice enquiry form and an advisor will call you back at the time that you specify.
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IVA's
The IVA Guide
Money Advice Direct has put together an IVA Guide based on the enquiries and questions that we receive at our helpline offices.
In the guide we cover such subjects as IVA Approval, early settlment of your IVA, missed IVA payments, IVA failure, additional debt claims and much more.
[click here for IVA Guide]
What is an IVA?
The IVA is an extremely powerful tool enabling you to clear your debt and return to a clean financial bill of health. Visit Money Advice Direct's Guide to Individual Voluntary Arrangements (IVAs).
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DANGER
Due to the tremendous demand for debt consolidation services the United Kingdom is now overloaded with debt management companies that contain misleading information. [more...]