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What personal debt solutions are available to consolidate personal debts in the United Kingdom?
- Which are the best personal debt consolidation solutions available?
If you are looking to consolidate personal debts and cannot find a personal debt consolidation solution that seems to suit you, it is worth taking further advice to see if you have been given all the information you need to enable you to make an informed decision.
There are long term financial implications to consider when choosing or selecting a personal debt solution and these should be considered before making a final decision.
You may have been advised to enter an IVA or even a Personal Debt Management Plan, whichever personal debt solution you have been advised to enter, you should always obtain a second opinion.
- Not every Debt Management Company will be honest with you!
- Lewis Alexander Financial Management is an established personal debt consolidation service operating nationally throughout the UK.
- All advice is given in the best interest of the respective client and all calls remain confidential.
Personal debt consolidation services and debt solutions available will differ based upon those individuals personal circumstances who are applying. If you are working you may be eligible for a debt solution that someone who is not working cannot consider, this is usually due to the person being employed and having a regular income.
There are personal debt solutions available for people who are on long term or short term state benefits but again these debt solutions will be available to people subject to the level of personal debt they may have.
When considering or exploring which personal debt solution is the best for you to proceed with, it is worth thinking about the changes you may encounter whilst that personal debt solution is in place.
- Are you due to retire in the next couple of years?
- Will you have health issues that affect your income?
- Do you receive state benefits that may stop or be reduced?
The above are just a few possible changes in circumstance that people go through whilst progressing with a personal debt solution, usually over a period of a couple of years.
If you do not consider possible future changes to your personal circumstances then you could actually fail to select the best debt solution that is right for you.
If you need help to clear or consolidate personal debts and are struggling to find the right personal debt solution, then please contact our debt helpline today in confidence.
- Call FREE using – 0800 018 6868 today!
- Lines are open 24 hours a day / 7 days a week
- Your call is usually FREE from a UK land line but mobile call costs may vary.
Can you settle my debts immediately… please?
With increasing numbers of Brits turning to debt management companies for help, the question we encounter most is ‘Please, please, please can you wipe out my debts as soon as possible?’
99% of the time the answer is “No” and at Lewis Alexander we believe that our responsibility is to set our customers on the journey to a stable long-term financial existence. Therefore, rather than starting with a solution we like to start by understanding the personal circumstances of each of our clients.
By completing a thorough financial healthcheck with any prospective new debt management client, we are then in a much better position to offer debt advice and debt solutions to best help our clients. Typically, we find that the most common solutions are:
(1) Entering into a long-term or short term debt management plan
- Where we negotiate with your creditors on your behalf
- Potentially stop interest accruing on your debt – this is not guaranteed!
- Agree reduced debt management repayment plans over an agreed period of time
(2) Re-structuring debt payments for our clients
- Where we discuss with your creditors the current debt repayment amounts, term of loan/debt & the interest rate
- Agree new terms that are more preferable to you if possible
- Potentially change the debt solution that you are using
(3) Arranging partial settlements for outstanding debts
- Where we negotiate with your creditors to encourage them to accept a reduced repayment, by way of one lump sum usually known as a short settlement or settlement in full and final.
- Ensure that any agreement is acceptable to all parties
(4) Entering into an IVA
- Whilst some of our competitors consider this to be the ‘first debt solution’ we prefer to use this as a debt solution of last resort.
- An IVA is a formal agreement where you come to an arrangement with creditors you owe money to, to make reduced repayments towards the total amount of your debt in order to pay off a percentage of what you owe over a set period of time, usually 60 months.
The choice of debt solution depends solely on the individual circumstances of our clients, but each of these options take time to negotiate, agree and formalise. The only true option that leads to immediately sorting out debt as soon as possible, is the 100% (or very near) repayment of all of your debt. Which, if we are being honest may have made you less likely to have called Lewis Alexander to access our expertise in helping ordinary people, like you, who are in debt!
The one thing that we can promise to do instantly, in all cases, is to identify a solution that best suits you. Should our service not be what you need we will try and refer you to a company or organisation that is better placed to help you. For many people who are in debt they would ideally like everything sorted using the wave of a magic wand, however, this does not happen but the feeling that their situation is being managed professionally is enough to take away a large percentage of the pressure of being in debt.
- Our free from a landline personal debt helpline is available by calling 0800 018 6868.
We believe that by providing easy access to our advice means that we are better equipped to start working on your personal solution as soon as possible should you qualify for any debt solutions that we can offer.
So, if you find yourself in personal debt and need some help to turn your personal finances around then call us on 0800 018 6868 now. Whilst we can’t promise instant debt clearance solutions, we do promise to work hard for clients and to look after your best interests.
- Call us today and see if we can help you to start to relieve some of the stress of being in debt.
- Our number again is 0800 018 6868.
If you have heard adverts on the radio and TV for debt management comparison sites or debt companies asking you if you are confused by debt, the way to actually clarify your questions or confusion is to speak to each company you have selected directly.
Prepare a list of questions that will help you identify if they are trust worthy and reputable, how can you be sure you can trust the actual comparison web site itself.
- Who is doing the homework on the debt management companies being compared and how often is the information updated?
Lewis Alexander was approached by a service claiming to be a debt management company comparison website for people confused by debt, they offered us the opportunity to pay them to be listed on their site, we asked them why we should pay to be compared for the consumers best deal, they could not answer our question so we did not advertise with them.
The lesson we can learn from the likes of Direct Line Insurance is that they cannot be found on comparison websites. This is a very large company owned by The Royal Bank of Scotland Group, why would they not be on comparison websites if they were so beneficial to them or their customers?
The only way we could see a debt management comparison website working was if it listed every debt management plan available in the country to a consumer at the time of the consumer search, without a total comparison of all debt plans available, how would the consumer know which company offered the best deal?
- They would only be aware of the best deal amongst the companies advertising on the debt comparison site. This is NOT a total comparison!
You should be very careful when taking information and advice on something as important as your personal finances. A company that specialises in comparing companies is doing just that, you should take financial advice off of a company who specialises in giving financial advice and clearing consumer debt, not just one that tries to compare companies that actually do just that.
If you are confused by debt problems and solutions available to clear debts, you can call our free from a landline debt helpline 24 hours a day in absolute confidence using 0800 018 6868.
- Our trained advisors are waiting for your call!
- The UK has found itself in emergency need of a debt management plan!
- Why?
- Because the countries debt problems have been allowed to go to such a point that drastic measures need to be taken to control the income and expenditure of the country or UK PLC as it is also known financially.
The above is exactly the same as when an individual or consumer leaves a personal debt problem to grow out of control without taking action to balance the income and expenditure into the household.
The longer the debt problem is left un-managed, the greater the problem becomes to manage!
Debt Management plans have been around in the UK since the early nineties, they offer consumers in personal debt an informal opportunity to pay off debts without having to borrow any more money to do so. Debt Management Plans came about due to people finding they could not obtain any further credit to consolidate, or put into one, all the other debts they had accumulated.
If you find you are in need of a debt management plan, the first thing you should do is contact a reputable debt management company. This way you can obtain advice regarding your personal situation. You should not be charged any fees up front when being advised and only if you decide to use that particular debt management service should you be asked to part with any money.
Debt Management in the UK is very common place in the personal finance industry and when a debt management plan is operated professionally by a reputable personal debt service, consumers can find that a debt management plan is a very useful solution to clear personal debt problems.
A debt management plan can help you to clear unsecured personal debts such as, credit cards and store cards, personal loans and overdrafts, catalogues, book clubs and even allow for you to repay car finance, mortgages and other commitments as part of the solution if your disposable expenditure allows for it. All secured debts such as car finance, mortgages and secured home loans have to be kept up and cannot be included within the debt management companies’ dealings with creditors, the debt management company must make an allowance within your expenditure for you to maintain these payments as they constitute your priority debts, this is how they form part of the overall debt solution that a personal debt management plan can offer.
Priority debts are debts that must be paid before others are taken into account, for example your mortgage payments must be taken more seriously than your credit card payments. It sounds so simple but the pressure that credit card companies can put on people who owe them money is often enough to make them prioritise the credit card repayment over the mortgage repayment.
This is why the press report horror stories daily about people who have lost their home due to failing to keep up with mortgage or rental payments.
If you find yourself in need of help and advice regarding a debt management plan or other form ofpersonal debt solution, please contact our personal debt helpline 24 hours a day in the UK using 0800 018 6868, our lines are open and your call is free!
How can a Debt Management Plan help me?
- Need Debt Management Help?
- Find Debt Management Questions and Answers!
During the course of our business day, we receive a lot of questions from prospective clients about debt management, how we can help them, how much it costs and the best debt soltuin for them to follow.
As you can imagine, all situations are slightly different and we specialise in helping people from all walks of life, you could be a single parent with a low paying job or even a footballer. Yes, even they get into these kinds of financial situations and need help with their debt problems. They are fully aware of the quality help a debt management plan can give them should it be needed.
- We have listed a few of the questions below,
One of those often asked questions is – How can a Debt Management Plan help me?
Debt Management Plans can help you if you are struggling and unable to repay consumer debts such as personal loans, credit cards, store cards, bank overdrafts and catalogues etc. If your income is lower than your outgoings, this will cause you to get further into debt each month.
A Debt Management Company will gather all the information from you regarding all your unsecured debts, your income from wages and any other means including state benefits and then decide with you, how much you are able to repay as one monthly sum to start the pathway to reducing the total indebtedness over time. One, new and affordable simple monthly payment is arrived at with the client to ensure they are comfortable with meeting that payment.
- The Debt Management Company will then negotiate with the various creditors as to the amount they will each receive monthly.
As you can imagine this involves a fair amount of work and negotiation with the various creditors.
One of the most common types of feedback we receive is that clients are so thankful that we make this process as pain free as possible and we manage to arrange a new debt repayment plan without the clients having to even write one letter.
It is possible to arrange all this yourself, but imagine just for a moment how much time energy and cost would be involved in the process if you were trying to deal directly with your creditors.
- A client who is already in financial trouble is less likely to be able to cope with such situations as well as trying to negotiate the best terms possible.
Yes, it’s true that a debt management plan will cost you a small amount each month, payable as part of the payment plan and usually included within your monthly payment but the cost is negligible when you consider the many aspects involved in arranging a structured repayment plan yourself.
- One needs to peek into the management side of a plan to see what is involved and appreciate the complex negotiations a reputable debt management company undertakes on behalf of a client.
Once a sensible monthly payment is agreed, the debt help provider will normally distribute your payments monthly on your behalf to your creditors on a pro-rata basis, minus the costs of the plan.
- A second question we receive is;
Do I need to pay any legal fees and Do I need to put my property up as security?
The answer to that question is NO in both cases!
A Debt Management Plan is not a legally binding agreement and therefore no legal fees are involved. If you have a property, this will not be needed for security when entering into an informal debt management plan.
What you will also find is that once a fair payment plan is arrived at, most creditors are very flexible in their attitude towards a debtor. This is very probably due to the fact that many lenders or loan companies look at it with the attitude that the person involved has taken the positive steps to approach a Debt Management Company and made efforts to re negotiate their debts.
- This is a very positive move!
They can also be very flexible depending on your track record of repayments.
You must bear in mind that under normal circumstances, debt management plans usually do not deal with but do take into account any secured loans such as mortgages or court fines and any tax arrears. These debts are normally budgeted for within your expenditure part of debt management plans financial statement.
For impartial advice on how a Debt Management Plan can help you right now, contact Lewis Alexander and ask to speak to a personal debt counsellor for free advice.
Professional debt companies like Lewis Alexander understand what people are going through and are willing to offer assistance that allows you to cope in these difficult circumstances. We will help you review all your finances in private and make a suggestion for a positive solution.
Lewis Alexander Financial Management, offer a first class personal Debt Management Servicenationwide throughout the UK. We are based in Trafford Park, Manchester and we have helped thousands of people in our history.
We have in house specialists who concentrate on debt management and personal debt and loan consolidation and we have been looking after a great number of our clients for many years now.
Call Lewis Alexander on their personal debt helpline using 0800 018 6868, our lines are open 24 hours a day, 7 days a week and your call is free.
- Do you live in Scotland?
- Are you in need of Personal Debt Help and Advice?
- Is the difference bewteen debt assistance in Scotland and England confusing you?
For most people that live in Scotland, the differences between debt solutions that are available in England compared to those in Scotland can be some what confusing to say the least. If you have previously taken advice from debt agencies and are still struggling to understand the various options available to clear your debts as a Scottish resident, please read this blog post further as we believe this will help you.
- Trust Deed
Most people are now familiar with the term IVA (Individual Voluntary Arrangement), for those that are not, it is a legal agreement between you and your creditors in England ONLY, and is a form of Insolvency that allows you to pay back an amount of the money you owe within a set or fixed period of time, usually 60 months or 5 years. The remainder of what you owe that has not been repaid is then written off by your creditors leaving you debt free.
- The Trust Deed, is very simply the Scottish alternative to the IVA in England. The difference is that in Scotland, the Trust Deed lasts for 36 months, not 60 months like an IVA in England.
Creditors are not duty bound to agree to Trust Deeds as they do need to make sure that they are obtaining a satisfactory percentage of the total debt to be repaid. This is not always possible when the clients circumstances are investigated as the client sometimes does not have enough disposable income (the money left over after essential bills and living costs) each month to meet the financial repayments, in this case the client can then consider a debt management plan or Bankruptcy.
- YOU SHOULD NOT APPLY FOR ANY FURTHER CREDIT ONCE ACCEPTED ONTO A TRUST DEED!
A Trustee will manage your Protected Trust Deed for you and Trust Deeds can only become protected if certain requirements are met by the individual, if the Trust Deed becomes protected, your creditors cannot take legal action against you and the interest or charges on your personal debt will become frozen.
You will NOT be charged to enter a Trust Deed arrangement, your creditors are responsible for paying your Trustee out of the contributions you make whilst the agreement is in place.
- Bankruptcy in Scotland is sometimes referred to by some as Sequestration
Sequestration involves removing or seizing a persons belongings or assets, to a value of the debt owed with a view to being of financial benefit to the creditor owed the money or in some cases this can be for monies owed to the Scottish state.
Laws in Scotland that appertain to personal debt and finance agreements can vary based on what type of agreement you have signed and with which company or lender. For an exact definition of different legal agreements, you should without question consider speaking with a Scottish Insolvency Practitioner or solicitor.
The above is a very basic explanation designed to give you a brief outline of the differences between, debt help in Scotland and that to the rest of the UK. For a more detailed explanation you can contact our personal debt helpline which is open 24 hours a day.
If you are struggling with debt in the UK, you must obtain personal debt advice as soon as possible.
- Unable to manage monthly repayments?
- Are you receiving letters and calls from credit card and loan companies?
- Have you missed payments on any of your credit agreements?
If you answered YES to any of the above, you need personal debt information that will assist you in clearing debts without further loans. Struggling with debt in the long term is not the way forward and the sooner you find away to end your debt, the better!
There are many different debt solutions which you can explore to find the one that suits you best, what you do need is the correct advice and this is not always available. The reason for this is due to most debt companies wanting to take you down the route that is most profitable to them, not YOU!
The most usual ways to clear your debt without another loan are listed below;
IVA in England or Trust Deed in Scotland
You may have already considered some of the above if you are struggling with debts and may not have received the correct advice based on your current situation.
At Lewis Alexander, we specialise in helping people every day who are struggling to clear their personal debts, we do this without the individual having to take on further credit or loan agreements.
We will be able to help you! All you need to do is call our personal debt helpline in confidence and have a brief confidential chat with one of our experts. This way you are not paying for the advice and you can compare our debt help to other companies you my have spoken with, or are about to speak with.
- Call free today, what have got to lose apart from ten minutes of your time?
- You may even find that after our brief chat, your problem is not as bad as you originally thought, which in itself is a massive relief to most people.
- IVA or Debt Management
The most difficult decision when trying to clear personal debts can be which debt solution to choose after doing all your homework on the options available.
- Debt Management Plans or
- IVA – Individual Voluntary Arrangements
- are usually the two solutions that people have to decide between. When faced with the two options, there are many factors that influence the choice of informal debt management over an IVA and likewise, an IVA over a debt management plan.
It is very important that you understand the differences between these debt solutions, as if you do not, you could easily have the wool pulled over your eyes by a clever and unscrupulous debt advisor that wants to earn extra commission for placing you onto an IVA as opposed to an informal Debt Management Plan.
A professional debt management company such as Lewis Alexander will offer you advice tailored to your personal situation and if you are better suited to a debt management plan rather than personal Insolvency or an IVA, we will tell you, however, you make the final decision based on the debt advice given to you.
It is your choice no one Else’s!
When you are in debt it can feel like everyone else does not understand your particular situation and that you feel that your debt problems are some how different to all others. This is not true, it is actually a mental stigma associated with being in personal debt, you are not alone and your financial problem is usually pretty much the same as others around you, it is your personal change in circumstance that will differ to other peoples, this is what creates the problem of being in debt in the first place.
Some people split from partners or others suffer a death in the family, others may have hours at work reduce resulting in less income, the list is endless but what is the same is the debt problem that people find themselves with due to being set back financially by the change in circumstance they may have suffered.
The main difference between an IVA and Debt Management Plan (DMP) is that
- An IVA is a legally binding agreement
- A debt management plan is not.
With a debt management plan you can expect to repay much of what you owe. With an IVA, the debt that is not repaid within a 60 month period is then written off by your creditors, this is agreed at a creditors meeting prior to the IVA commencing.
The IVA will guarantee to freeze any interest or charges being applied to your accounts, a debt management plan will not and it is down to the hard work and efforts put in by your chosen debt management company as to how quickly your debt is reduced, make your selection regarding your chosen debt company or debt service carefully!
- The cost of choosing or selecting the wrong debt company or agency to solve your debt problems can be as high as the interest being applied by your creditors to your accounts.
- The wrong debt company will have no concern on actually getting the job done, they are more concerned with extracting funds from you and fobbing you off with none truths.
For honest, genuine, debt advice and help in the UK, call our free from a landline personal debt helpline today using 0800 018 6868, your personal details are dealt with in absolute confidence and your call is free!
