Debt Help

Quotezone provides the following service. We appreciate some web site visitors may be interested in debt help, so on this page we merely display external advertisements relating to debt help. The order of listings does not represent any advice, recommendation or comparison by Quotezone. By clicking on any of the above, you will be brought to a third party website which has no affiliation with Quotezone. We purely display these adverts and do not check or validate their content or the content of the third party website advertised. Where any of the activities we do on this page could be considered as credit broking then please note that we only act as credit broker in displaying promotions provided by others and we do not act as a lender. We provide this service on a commercial basis receiving some money from those who advertise but we provide these listings free of charge to you. Please remember when speaking to any debt help company to ask them about any charges they may make and at what point those charges start to be incurred.

Debt solutions should not be entered into lightly as they will affect your credit rating. Failure to keep up with repayments under an Individual Voluntary Arrangement or Protected Trust Deed can result in bankruptcy or legal action. Different debt solutions have different risks attached to them. Some debt solutions are only available in certain countries or jurisdictions within the United Kingdom. Individual Voluntary Arrangement, Debt Resolution Orders and Protected Trust Deeds will result in your name being entered on to a public register. Most debt solutions only apply to certain debts.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR OTHER DEBT SECURED ON IT.

Debt Help Guide

Debt is a common problem for UK adults, and debt is something that could spiral out of control quickly if care isn’t taken to manage it effectively. If a person finds themselves in debt and they’re not sure how to manage it, they could have several different options. Each of these debt solutions might be suitable for specific types of debt and specific situations, so it’s important to spend some time considering each one in order to decide which one might work best.

What are the Options for Managing Debt?

If a person owes money to one or more creditors and they need help with debt management, the best debt management option may depend on how much money is owed, the kind of debt they have, the value of any assets owned, and the income level.

Debt Consolidation

Debt consolidation tends to be an option that involves taking out a loan in order to pay back creditors. For instance, if someone owes money to several different credit card companies, a debt consolidation loan could allow them to pay back the credit card debt all at once, preventing interest from continuing to mount up. This could be advantageous if someone has high-interest credit cards, as it’s often possible to obtain a debt consolidation loan at a lower interest rate.
Note that this solution may only work if they could avoid getting into more debt. If someone pays off existing credit card debt with a debt consolidation loan, but then end up spending more on credit, they could end up worse off than before they took out the loan.

Debt Management Plan

A debt management plan is an agreement that someone enters into with their creditors. If the creditors agree to the plan, they agree to accept what money a person could afford to pay them each month, even if it’s less than it should be. These plans may be a good option for people who could only afford to pay small amounts of money to their creditors each month, or people who have temporary debt problems but might make normal repayments within a few months.
To arrange a debt management plan, a person could work with a debt management company. The company arranges the plan, and contacts creditors to ask them to agree to the plan. Once the plan is set up, the person pays the debt management company, who then pays the creditors.
Some people choose to arrange their own debt management plan by contacting their creditors directly. This option could save some money, as debt management companies usually charge a fee for their services.
Note that creditors aren’t required or obligated to agree to a debt management plan. And, even if creditors do agree, they could still take other actions to recover their money in the future.

Individual Voluntary Arrangement (IVA)

When a person enters into an IVA they agree to pay all or part of the debts, and work with an insolvency practitioner to enter into an agreement with creditors. The insolvency practitioner may usually calculate how much to repay, and how long the terms of the IVA will last. They’ll then typically contact creditors. To start the IVA, 75% or more of creditors must usually agree to the terms. If this condition is met, the IVA may apply to all creditors, even including any who didn’t agree.
An IVA could last for up to five years. Once the end of the IVA period has been reached, any remaining debt is written off. An IVA tends to be an alternative to bankruptcy that allows the person to continue operating their business, if they have one. If someone who enters into an IVA can’t keep up with their creditor repayments, the insolvency practitioner has the right to cancel the agreement and declare that person bankrupt.

Administration Order

An administration order is a way of paying a High Court or County Court judgement when someone is unable to pay in full. Under an administration order a person tends to make a single monthly payment to the court, and the court distributes this money to creditors. Unlike a debt management plan, the creditors usually have some legal obligations to uphold, in that they need to gain the court’s permission if they want to take any further action.
To obtain an administration order the debt must be less than £5,000, and the person must usually be willing to accept the court’s judgement in terms of how much they pay each month, and how much of the total debt you must repay.

Debt Relief Order

If someone owes less than £20,000, don’t own their own home, have less than £1,000 in assets, and have little discretionary income, they may be able to get a debt relief order. This order tends to be obtained with the help of an authorised debt adviser, via the bankruptcy court. If a person obtains a debt relief order the creditors need to get the court’s permission to take action to recover the money they are owed. In addition, the terms of a debt relief order typically impose some restrictions on a person’s ability to take out a loan or run a business. Once someone obtains a debt relief order these restrictions may be imposed for a period of one year. After this period is up the person’s debts are written off and the restrictions are lifted.

Bankruptcy

This option is generally a last resort for someone who can’t pay their debts, and who has exhausted their other options for debt management or repayment. Once someone applies for bankruptcy their application is processed by an adjudicator for the Insolvency Service. If the person is made bankrupt, control of their assets is given to their trustee, a court-appointed official. The trustee may sell assets in order to pay the person’s bankruptcy debts. Once a person is bankrupt, their ability to borrow money or run a business is usually limited for a period of time.