The financial climate over the past 6 years or so has seen in influx in UK Debt. With many people struggling with stagnant incomes and job losses, many have hit debt problems.
UK Debt Figures from The Money Charity for October 2016 show the average UK debt including mortgages at an average of £55,504 and that the Citizens Advice Bureau dealt with 4,495 new debt problems during the 1st quarter of the year.
If you are one of the above statistics in the UK debt report and are finding your current debt difficult to manage, there are options available to you.
Debt Consolidation is one of the simplest methods to clear your debt. It is essentially a loan that is used to pay off your debts. This is a good option for homeowners who have a regular income and can afford the monthly loan repayments who are just looking to manage their debts more efficiently.
Debt Management is an option for those that maybe in more serious debt and find it a problem to obtain a debt consolidation loan to clear their debts.
A debt advisor calculates your disposable income each; this amount is then put together into a single monthly payment which is distributed amongst your creditors. DFH will speak and negotiate with your creditors for you. You won’t have to attend any meetings or talk with your creditors.
This option is available to both tenants and homeowners with unsecured debts of at least £1,500 and above.
Individual Voluntary Arrangement (IVA)
If you have unsecured debts of over £3,500 and can no longer afford to make the repayments and cover your other living costs. an IVA could be the solution for you, depending on your circumstances.
If an IVA is selected as the preferred debt solution for you, we will work in conjunction with our selected Insolvency Practitioners at Debt Support Centre to create a formal agreement between you and your creditors (the companies you owe money to). We will only recommend an IVA to you if we consider this is the appropriate solution for you.
Debt Support Centre will arrange affordable monthly payments, usually over 5 years. After that time, any remaining unsecured debt is written off. Please note 75% (by debt value) of voting creditors must be in favour of the proposal for the IVA to go ahead.