Debt management
Can I include secured loans in a Debt Management Plan, such as car finance or mortgage?
It is very important to understand that debts which have underlying security related to them cannot be put into a plan.
Remember:
- If you fall behind on your car payment your car may be repossessed
- If you call behind on your mortgage or secured loan payments your home can be taken from you.
Basic Rules
When dealing with these types of debts you should always follow these basic rules:-
- Always contact your creditors (i.e. the people you owe the money to)straight away and let them know that you are having difficulties. They may be able to help you draw up affordable proposals for paying off the arrears.
- When contacting your creditors, if the first person you speak to is unhelpful, ask to speak to somebody more senior.
- Make sure that you contact everybody you owe money to.
- Don't ignore letters and telephone calls from your creditors. The problem won't just go away. It will get worse the longer you ignore it.
- Don't borrow more money to pay off your debts without first thinking very carefully about it. Borrowing more money may only get you further into debt and if you take out a loan from a loan/finance company you may be charged very high rates of interest storing up further trouble for the future.
- Decide which of your debts are the most important. Make sure that you tackle these priority debts first. Priority debts are usually those which can mean losing your home, having your gas water or electricity disconnected, or going to prison.
- Always reply to letters from the Court and try to attend all Court hearings so that you can give your version of events and also make sure that the court is fully aware of your financial situation.
- If you attend the court hearing and make an offer to repay the arrears within the remaining term of the mortgage the court may consider this to be a reasonable offer and order the mortgage lender to accept it.
Listed below are some of the frequently asked questions on Debt Management Plans
- How do I know whether a Debt Management Plan is right for me?
- What are the advantages of a Debt Management Plan?
- What are the disadvantages of a Debt Management Plan?
- Is a Debt Management Plan a type of loan?
- How long will I have to pay a Debt Management Plan before I am debt free?
- How much does a Debt Management Plan cost?
- How much money will actually go to the companies I owe money to under a Debt Management Plan?
- How do I make the payments?
- If I have a change of circumstance can I stop the Debt Management Plan?
- Who tells the companies I owe money to that I am actually in a Debt Management Plan?
- Will the companies I owe money actually accept a a Debt Management Plan?
- How a will Debt Management Plan affect my credit status with Experian, Equifax and Callcredit, the three main credit reference agencies
- Will a Debt Management Plan stop all the companies that I owe money to constantly telephoning me and sending me letters?
- Will I receive a regular report to inform me that my debts are actually going down?
- After the Debt Management Plan is set will I receive be able to get any additional help and advice?
- After the Debt Management Plan is set up can I still use a credit card or apply for car finance if I budget for it?
- Once the Debt Management Plan has been set up does it mean that I will have to keep paying interest and bank charges?
- Can I include secured loans in a Debt Management Plan, such as car finance or mortgage?
- Can the companies that I owe money to threaten to take my house or flat once that I am in a Debt Management Plan?
- Can I include all my debts in a Debt Management Plan?
- Debt Management Programme
- DWP Debt Management
- Credit Card Debt Management
- Advanced Debt Management Plans
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- Advanced Debt Management Solutions
- Association of Debt Management
- Best Debt Management
- Budget Right Debt Management
- Christian Debt Management
- Consumer Debt Management
- Debt Management can help you make a clear start with your debts
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- Debt Management Associates
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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...]