Debt consolidation, debt reduction and debt management
To help make Devon debt free, our services can help you resolve personal debt problems.
Depending on your circumstances this solution may be an IVA, loan consolidation, or rearranging a mortgage where suitable. In order for us to give the best advice we need to know all the detail about your money problems, including all personal loans, credit card debts, store card debts, mortgage arrears and any other borrowing and debt you may have. In some cases personal bankruptcy is unavoidable, however in our experience this does not happen very often, and is considered a last resort to deal with debt.
Once we have found the best debt solution, we work with you to provide guidance and support to resolve your money problems as quickly as possible, with the minimum of stress.
Individual Voluntary Arrangement or IVA - this arrangement is simply an agreement between you and your creditors. The amount you repay is calculated on what you can realistically afford to pay (not necessarily on a monthly basis).
The basis of an arrangement can take many forms depending on your personal circumstances, after which you will be debt free. In some cases 60-70% of your debt can be legally written off. Once an IVA is approved all interest and other charges are stopped.
The fee for an IVA is taken from the monies provided for creditors, and is generally paid before creditors, therefore there is no additional cost to you. An IVA is an effective and discreet way of dealing with money problems. For impartial advice on an IVA click here
Loan consolidation - is a way of combining 2 or more personal loans. Consolidation loans reduce the monthly repayments to an affordable level and extend the loan duration. This is often part of a package helping you to a healthy financial future. It is advisable that you stop using credit cards or taking out further loans after the consolidation. Depending on the amount of money, some loans may need to be secured by an asset e.g. your house.
Remortgage - due to the huge increase in the value of property over the past few years, many homeowners are able to release equity in their property to repay debts. This process is called re mortgaging and involves replacing your current mortgage with a larger one to release money to repay your loan or loans. This solution is only suitable where the increase in monthly mortgages is affordable. Click here to see the approximate value of your home so you can consider a remortgage.
Bankruptcy - this is often a last resort when you have no ability to repay the money that you owe. When all other options such as loan consolidation or an IVA are not suitable, we will suggest bankruptcy. This solution means that once declared bankrupt, your debt will be ring-fenced and you will be no longer obligated to make payments to your creditors. You are also protected by law from your creditors taking any further legal action. Depending on you income you may have to make monthly payments to your Trustee in Bankruptcy for up to 3 years. The Bankruptcy Order will also appear on your credit file for 6 years, and does impose significant restrictions on you during its term. The bankruptcy order appears in the local & national press as a public notice(as opposed to an IVA). All and any assets you may have are automatically transferred to the trustee (as opposed to an IVA).
