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The Debt Advisor: Local Finance and Debt Advice

Published on:March 18, 2019Author:alex

Is problem debt keeping you awake at night?

Struggling with debt which leaves you with insufficient money to live on is very stressful and seriously affects your mental well-being.

Personal debt is on the rise in the UK, with the average household debt now standing at a record £15,400 in 2019.

If you’re one of the millions of households struggling to repay your debts every month, it can be difficult to know where to turn.

We Can Help

The Debt Advisor has been in existence for 19 years and we have gained a reputation as the “go to” practice for debt advice and debt solutions.

We are one of the few practices in England authorised by the Financial Conduct Authority to offer debt management plans.

If you contact us, one of our debt advisors will speak to you about your personal circumstances, your monthly budget, and explain all your options so you can decide which debt solution works best for you.

We may be able to help you with debts, including:

  • Credit Cards
  • Payday Loans
  • Council Tax Arrears
  • Store Cards
  • Personal Loans
  • Overdrafts
  • Utility Bills
  • CCJ Debts

There are a number of debt solutions available, including IVA, Debt Management, Debt Relief Order and Bankruptcy.

There may be more than one solution that is suitable for you. We will run through the pros and cons of all debt solutions.

IVA

An Individual Voluntary Arrangement (IVA) may be the appropriate solution for you if your debt payments are eating into the money you need to live on.

An IVA is a formal agreement with your creditors which allows you make affordable monthly payments over a 5 or 6 year period with the unpaid balance being written off at the end of that period, when the IVA is successfully completed.

The average percentage of debt written off on IVA’s we have set up in the past 12 months is 67%.

An example of how an IVA could work for you:

situation before IVA

Total Unsecured Debt

£64,863.00

approved IVA solution

Monthly Contributions:
£179 for 7 months
£421 for 65 months

£28,618.00

Dividend received by creditors (per £)

£0.32

Read the full case study: Robert

Our online debt calculator can help you work out what you are paying to creditors each month and what you can realistically afford to pay in comparison.

You can find out more about how IVA’s work and the advantages and disadvantages of an IVA here.

Debt Management

A Debt Management Plan (DMP) allows you to repay your debts – usually in full – but at a rate which you can actually afford without having to resort to further borrowing.

The Debt Advisor is authorised to manage DMP’s. The arrangement provides for you to make affordable monthly payments towards your debt. The payment is distributed by your DM provider to your creditors. The DM provider also liaises with your creditors to freeze interest and charges and to accept a lower payment from you.

An example of how a DMP could work for you:

situation before Debt Management

Total Unsecured Debt

£14,977.00

Previous Minimum Credit Repayments

£650.00

Surplus Income

£250.00

Shortfall

£450.00

approved Debt Management solution

Monthly Contributions

£250.00

Read the full case study: Abbas

You can use our online debt calculator to work out what you are paying to each of your creditors and what you can realistically afford to pay each month.

You can find out more about how DMP’s work and the advantages and disadvantages of debt management here.

Alternative Solutions

Other debt solutions may be suitable for you.

Bankruptcy is likely to be appropriate if you do not have assets which would be at risk and also your surplus funds after providing for your reasonable outgoings are minimal.

The process is now much simpler and involves completing an online application and paying a fee of £680. Bankruptcy is, however, a complex procedure and it is advisable to get sound and sensible advice.

If your unsecured debts are less than £20,000, you don’t have assets worth more than £1,000 and you have surplus funds of less than £50 per month (after deducting your reasonable household expenditure), a Debt Relief Order (DRO) may be more suitable for you.

A DRO is a formal process which if approved, will freeze your debts, interest and creditor recovery procedures for a period of 12 months. If after that period, your situation has not changed then any unsecured debts will be written off. The application fee is £90 and you do not make any payments to your creditors.

If you live in Scotland, the solutions are different. You can find out more on by visiting Scottish Debt Solutions.

Get Debt Advice Today

For full debt advice and whether any of our available debt solutions would be the best option for you to get out of debt, you can speak to one of our advisors directly on 0800 085 1825 or arrange a callback.

The Debt Advisor Ltd is regulated by The Financial Conduct Authority. This means we are able to offer debt advice and deliver both formal and informal solutions. All debt solutions need to be carefully considered and you must take independent debt advice. We hope that the information and debt advice on this site including Frequently Asked Questions, will help inform you.

There are sources of free debt advice and services. You can find out more by contacting the Money Advice Service on 0800 138 7777 or by visiting their website.