10 things you should know about debt advice
What is debt advice?
Debt advice is tailored advice with the purpuse of assisting
over-indebted individuals to gain control of their finances and remove their
debt burden.
What solutions are available?
There are a range of solutions available which include a Debt
Management Plan, Full & Final Settlement, Individual Voluntary Arrangement
(IVA) or, in a worst case scenario, Bankruptcy.
Debt Management
A financial solution that will allow you to make affordable
monthly payments to your creditors without having to borrow more money. It may
be possible to negotiate with your creditors to reduce the monthly payments and
freeze interest so that you will be able to clear your debt faster.
Full & Final Settlement
A debt solution which is available for people who are able to
make a lump sum payment of at least 60% of the unsecured debt owed to
creditors. The level of reduced settlement is dependent on the creditors, the
type debt and your individual circumstances. By accepting the reduced lump sum
payment, the creditor agrees to write off any outstanding debt.
Individual Voluntary Arrangements (IVA)
A solution availble to people who reside in England, Wales and
Northern Ireland. A legally binding agreement that enables you to put a
proposal to your creditors which, if accepted, will allow you to make one
monhly affordable payment, usually for 5 years. This solution is suitable for
individuals with unsecured debt of at least £15,000 with 3 or more different
creditors.
What are the benefits of debt advice?
You will be given help on the road to financial recovery
allowing you to regain control of your situation. You may also have the
potential to retain your property while clearing your debts. If you seek debt
advice as soon as you realise you have a debt problem then you may be able to
avoid Bankruptcy.
Any other options?
Bankruptcy is a debt solution for the worst case scenario and
will only be considered when all other options have been explored. The
principle effect of Bankruptcy is that if you own any valuable assets,
including endownment policies, these would usually have to be realised for the
benefit of your creditors.
Think Debt Standard
To ensure you receive the highest quality of debt advice you
should only speak to a company with the Debt Standards Accreditation. This
award is the UK's first independent quality mark system whereby all member
companies must adhere to a rigorous code of practice. This is why Wentworth
Financial Services has chosen NewTomorrow as it's partner debt advisery
company.
Talk to someone
If you think debt is a problem then why not take a financial
health check today? The sooner you take action to resolve your debt the sooner
you begin to regain control of your financial situation and potentially avoid
the consequences of Bankruptcy.
Take our debt test to see if you
are likely to have debt problems over the next year or so
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