Debt Management UK
Debt Management
Money Advice Direct have a specialist debt management UK service clients suffering from debt problems.
We receive over 1000 calls week from individuals, families and businesses who are having ongoing difficulties with debt.
Debt Management UK almost certainly will result in all interest and charges being stopped, reduced or written off. In many cases out debt management team can liaise directly with problem creditors to guarantee a result. Many of our clients feel their debt problems cannot be solved. They think they are the only ones that are in debt. They are always delighted when we inform then that their debt problems can be solved without the need to take out further loans to consolidate their debt.
Many of our past and present clients have built up debts over a very long period of time. Some have built their debts up very quickly. Some clients are suicidal and feel there is no solution to their problems. We comfort then and tell them to provide our team with all their details and let Money Advice Direct teams take over.
If you or family is suffering from debt problems please not worry any more as anyone with UK debts can benefit from our debt management. UK debtors who are suffering from serious debts problem often decide to take out an IVA. An Individual Voluntary Arrangement - IVA is a formal agreement between you and your creditors where you will come to an arrangement with people you owe money to, to make reduced payments towards the total amount of your debt in order to pay off a percentage of what you owe then generally after 5 years your debt is classed as settled.
If debts are below the IVA threshold (usually £15000) then clients can consider a debt management plan. Debt management is sometimes not quite as effective as an IVA because it is not legally binding. A debt management plan is an arrangement with your creditors to pay back the debt by regular installments. Instead of you speaking to your creditors yourself to arrange the plan, a Debt Management Company (DMC) does it for you. Usually you have to pay for this service.
The advantages of using a debt management UK service are that:
- you make only one payment direct to the DMC. They divide the payment fairly between all your creditors
- you don’t have to contact your creditors yourself, the DMC will do this for you.
However there are also disadvantages to debt management UK service:
- Most a debt management plan companies charge an upfront fee which can be quite high. This leaves you with less money to pay off your debts
- Most a debt management plan company also charge an administration fee to the customer each month. This leaves you with less money to pay off your debts
- Some debt management plan companies take all of the first month's payment as a fee. This puts your account into arrears by a month or more. These arrears will be recorded on your credit file)
- A debt management plan company only deal with non-priority debts and you will have to deal with the more important priority debts yourself
- Most a debt management plan company do not give benefits advice or financial advice so you may lose out on important information about your finances
- If you own your home, a debt management plan company may want to use it as security for the debts. This means that if you don't pay the arrears as agreed, you could lose your home.
If you do use a debt management plan company, check the agreement carefully before signing anything.
Check:
- whether you can cancel at any time if you are not happy with the service
- what the fees are
- whether you will get your fee back if you cancel
- Which creditors the debt management plan company will deal with and which creditors you still need to deal with.
The secret of a good debt management plan is making a plan and sticking to it. Here are some tips on debt consolidation and ways you can help cut debt:
Budget
- Look closely at your debts. You may not realise how much you really owe.
- You can't stop spending altogether so draw up a budget to monitor your outgoings and prevent further debts. Write it down and stick to it or you're going nowhere.
- Give your debts a priority - rent or mortgage arrears first, then gas and electricity. Then see what's left over to pay to your other creditors and work out a realistic plan for debt repayment. Even if it takes years, it's better than
For more information on debt management UK please call 0800 074 6918.
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...]