Existing Clients - If you are struggling due to Covid19, please call us on 0161 375 3328, to discuss your options

All Posts By

admin

A range of debt options from the Debt Support service.

By | Debt advice, Debt management

Dealing with debt can be extremely challenging for anyone, and you could find yourself falling deeper into financial difficulty if you are falling behind on repayments. The important thing to remember is that there are places you can turn to for help. The Debt Support Service is one such point of contact, and we are here to help you today.

The Debt Support Service is amongst one of the leading debt management companies in the UK. A Debt management plan, UK is an informal agreement between you and your creditors, with which you arrange to pay back non-priority debts (such as credit cards, bank loans, water charges). Priority debts such as Council fines, Court fines, Income Tax etc, are not applicable for a debt management plan.

Range Of Debt Options - Debt Support service

You can try to initiate a plan on your own, however many find that debt management companies possess invaluable knowledge that they can offer to those struggling with debt, and have connections to creditors that allow them to negotiate on your behalf. If you find a ‘non-fee’ charging provider, this means that all the money that you pay into your debt management plan will go directly to your creditors, allowing you to pay your debt off sooner. Most debt management companies however, do charge a fee for setting up a debt management plan. A debt management plan helps you to manage your debts, paying them off at a more affordable rate. All your monthly payments will be consolidated into one payment, which you then make to your debt management company, who will in turn distribute it amongst all of your creditors. The payment amount will be based on the amount of disposable income left after assessing your monthly budget. A debt management plan, UK is not legally binding, which means that you are not tied in for a minimum period and can be cancelled at any time.

 

Debt management companies will always assess your financial position and provide you accurate advice on the repayment options available. They’ll also contact creditors on your behalf to initiate the debt management plan. Typically, most creditors do agree to a Debt management plan, UK as they see that you are making an effort to address your debt situation and pay back the money that you’ve borrowed. Often creditors are asked by the debt management company to freeze all new charges and interest, and creditors may agree to do so if certain conditions are met. A debt management plan, UK offers great flexibility, and can offer a very good route to take if you’re struggling with debt.

The Debt Support Service has expert advisers who are ready to talk with you today, and work on your behalf to find a pathway out of debt. We are fully regulated and authorised by the Financial Conduct Authority (FCA).

Debt Advice by Debt Support Service

Debt advice and help from the experts – The Debt Support Service

By | Debt advice, Debt management

With a growing population, economic slowdown and unprecedented global circumstances, businesses, individuals and even whole countries have been met with very difficult conditions. As a result, many have fallen into debt. But fear not, debt problems can be solved, they just first need to be adequately addressed. It may not be a quick or simple road ahead, but there is always a way to tackle a problem, and the earlier you tackle it, the easier it is to deal with. When you feel out of control you may be worried or frustrated, in this case it is essential to seek advice from those who have knowledge and experience of your particular predicament, and here that we should seek sound debt advice. For the best debt advice, a debt management company is going to have specialist knowledge. A resounding reason to approach a debt advice agency is to obtain crystal clear guidance on which plan is best for your circumstances. Debt advice is given to help people in financial difficulty and guide them through the various options and plans that are appropriate for their financial situation.

Debt advice and help from the experts - Debt Support Service

A large proportion of people living in the UK are struggling with debt. This has resulted with an increase in debt management companies UK trying to help people manage these debts. The first debt advice that debt management companies in the UK will offer you is to look at a ‘debt management plan’ (otherwise known as a DMP), this is an unofficial agreement between you and your creditors to pay back all of your unsecured debts. These include credit card debts, utility bills and unsecured bank loans. If you find a ‘fee-free’ provider you will be making reduced monthly payments that will be distributed between your creditors. If your creditors agree to the proposed DMP plan, they may be asked to freeze the interest charges on your debt. Whilst providing debt advice, debt management companies in the UK collect basic information about you, which will include your monthly income, assets, liabilities, expenditure and a list of your debts. From this information, it is then determined what you can afford to pay towards your debt each month.

 

At the Debt Support Service we go through not only your financial status, but also your personal circumstances so that we can fully understand your current situation and the difficulties you may be facing. At this point we can discuss which debt solution is most suitable for you. We’ll then go through the available options, the pros and cons to each option and provide you with the information you need to help you make an informed choice. With the help of this process, we can fully appreciate your desire to become debt-free, and understand which debts should be prioritised.

Whilst many people might want to pay their debt back in full via a DMP plan, others might not wish their credit rating to be affected by an option such as this. At the Debt Support Service our role is to provide you with the best debt advice to help you determine which options are most suited to your situation. It is completely your decision as to which debt solution you choose. We take the time to assess your financial and personal circumstances before providing you with debt advice, as we believe both of these factors are crucial to the process. You can always reach out to the Debt Support Service through online chat, telephone call, or email and our trained advisers will then guide you through your debt issues.

Debt management Agency - Debt Support Service

Debt management help from the Debt Support Service

By | Debt management

Good financial planning can help to reduce stress, save money, raise your credit score and potentially make low-interest rates on any future credit available to you. But what happens when things don’t go to plan and we start to lose control of our finances?

Firstly you might have to contend with late payment fees from credit cards loans and failed standing orders, which have the knock-on consequence of affecting your credit score. Then in the case of credit cards, if you’re not paying significant amounts towards the money you owe each month, you’ll be owing increasingly more money due to the interest on your debt. On top of all this, you might be hounded with phone calls from debt collection agencies. A low credit score can make it difficult to buy a new home or a new car.

With all this in mind, it’s extremely important to keep on top of your finances and not allow debt to spiral out of control. If you do unfortunately find yourself in such a position, a good course of action is to approach a debt management agency. Debt management agencies can help you find a solution to your debt problem and help to get your finances back on the right track. A Debt management agency will assess your financial position and offer you advice on the repayment options available, potentially contacting creditors on your behalf to arrange a debt management plan. One such debt management agency is the Debt Support Service, they are only a phone call or email away and are ready to help you tackle your debt.

A debt management agency works with a debtor to establish how much money they have incoming and outgoing, and how much they can reasonably afford to pay towards their debt each month (after expenses have been taken into account). The debt management agency will then draw up a budget plan that includes regular monthly payments to your creditors. This monthly payment is received by the debt management agency, before being distributed amongst your creditors. Some agencies are non-profit, or charge non-fee rates and if this is the case all the money from monthly payments go directly to paying off your debt. A significant benefit of a debt management agency is that they can negotiate with your creditors to reduce or possibly even waive your interest rate.

 

An IVA is one of the debt solution plans available. They can be an alternative to bankruptcy, and consist of a formal arrangement between you and your creditors. An IVA can be very flexible when compared with other debt options, adapting to your changing circumstances. The terms of an IVA can last up to five years and will remain on a debtor’s credit file for six years from the time that an IVA is initiated.

 

So how does an IVA impact you?

YourJob – It should have no direct impact unless you are a solicitor, an accountant, or work for a law firm. You can always check with an HR department to see if an IVA has any bearing on your position.

Assets – You will need to disclose all assets that you have to an insolvency practitioner.  Non-disclosure of assets at this point would be a violation of the law. Your insolvency practitioner will decide whether your assets should be included in the IVA, or if you can keep them.

Future income – Any future income that you may receive such as money received from the sale of a house, any windfall, an increase in your income, any inheritance or gift, should be disclosed and may then be included in your IVA.

If you wish to take that first step towards becoming debt-free – Contact The Debt Support Service today.

Debt Advice by Debt Support Service

Your first big step towards a debt-free life

By | Debt advice

For those who are struggling with debt and finding it difficult to manage their finances, seeking professional debt advice could be hugely beneficial.  There are many debt management companies in the UK which provide debt advice to those in need, however, not all debt management companies are regulated by the FCA. It is important that you approach an FCA regulated debt management company so that you have protection and the knowledge that you are dealing with accredited professionals who stand the best chance of helping you become debt-free.

The Debt Support Service is a leading FCA regulated debt management company, with the aim of providing fair and ethical debt advice to our UK customers. Our advisers are fully trained in handling a range of debt problems and financial situations. Even if a situation feels unresolvable, the Debt Support Service can help relieve anxiety and relay all the options available to you.

To fully understand the extent of your debt issues, it is imperative that you fully divulge your financial situation to one of our advisers. Once your full financial standing is established, you will be offered various debt solutions to choose between. Your adviser will help choose a debt solution that best suits your financial needs. You will then be provided with comprehensive debt advice, together with all the necessary support you require to lift you out of your debts.

 

One of the solutions that Debt Support Service offers is a debt management plan UK. This is a payment plan that manages all of your creditors for you. However, it should be stated that a debt management plan UK is applicable only for unsecured debts – these are debts not secured against any property or assets such as credit cards, education loans, bank overdrafts, etc. Our advisers will consider your income and expenses and calculate the amount that you need to pay every month accordingly. A proposal is then drafted which we submit to your creditors, who in turn will decide if they agree to go ahead with the debt management plan UK. If all is agreed, we will collect a regular monthly payment from you and distribute it between your creditors. The term of your debt management plan UK will depend upon the amount of debt you owe and how many monthly payments you make.

When you feel as if you’re struggling neck-deep with debt, it can be very difficult to know what best to do. Which debt solution should you choose? How best to manage your expenses as well as pay off your bills?,whom to turn to for help? By contacting professional debt advisers that can help you with the very best debt advice, you stand a great chance of getting yourself, your finances, and your life back under control. So, if you are struggling to manage your unsecured debts, as well as trying to get on with your day-to-day life, contact us today for a debt management plan UK. Make your life simpler by making just one single payment every month instead of multiple payments to each of your creditors.

Your first small step with debt management could turn out to be a big leap towards a debt free life!

Best Debt Management Company in the UK

Debt Support Service – Say “No” to debts!

By | Dining

Trying to settle all the outstanding debt you have on credit cards, mortgages and personal loans, as well as meeting all your expenses can be overwhelming. The increasing interest rate on debt can become crippling, leaving you frustrated and spiraling further into debt. Though it might be very hard to eliminate debt, with strong determination and an abundance of patience, it is possible. One of the options available and on hand to help you become debt free is via a consultation service from one of the debt management companies in the UK. They can help you in managing and paying off your debts, and not having to face your debts alone. They usually charge a fee for their services, but only when they can promise results which in turn will lower your debt.

Best Debt Management Company in the UK

 

What do UK debt management companies do?

Debt management companies UK help you coordinate and negotiate with your creditors in an affordable way so that you can pay off your outstanding debts. They will identify and calculate all your necessary expenses and then zero in on the amount that you can afford each month to service your debts. The best possible option to help you pay off your debts is then discussed and an action plan is drawn up. Debt Support Service is one of the leading debt management companies UK. We aim to help people who are trying to get a handle on their finances and debts problems. Our fully trained and skilled experts are perfectly placed to help you find the right solution to clear your debts.

 

Do debt management companies in the UK charge a fee?

There are certain debt management companies UK who charge a fee and some who provide their services free of cost. The fee paying companies will subtract their fee from your monthly payment before the remainder is passed on to your creditors. It should usually be between 10% – 15% of your monthly payment. Non-fee paying companies do also exist and in their case 100% of your monthly payment is passed on to your creditors to service your debts. They receive their fee or are funded by the creditors. Debt Support Service does not charge its customers for debt advice and organise and administer debt management plans without cost.

How do debt management companies UK help?

Debt management companies UK offer debt management plans in the UK as a solution for people who are struggling with debts of an unsecured nature. They organise your expenses, saving you the trouble of being contacted by each and every creditor, month on month, by creating a plan that you can adhere to and work your way towards paying off your outstanding debt.

What is a debt management plan UK?

A debt management plan UK is an informal agreement between you and your creditors to pay off all of your debts. It is a form of repayment plan, set up and managed by debt management companies in the UK. In a debt management plan UK, you make monthly payments to a debt management company that in turn distributes it amongst your creditors. With a debt management plan UK you can lower the interest rate that you’re paying, sometimes even reducing it to nil.

How long does a debt management plan UK last?

A debt management plan UK can last as long as 10 years. However it can be much less than that, depending on how much debt you have and how much you can afford to pay every month.

Is a debt management plan suitable for me?

A debt management plan UK is a good solution for you if :

  • You have an excess amount of money leftover after you have paid expenses such as; food, rent, bills etc, and you have priority debts such as a mortgage. There is no minimum or maximum level of debt to apply for a DMP. However, you will need to pay a minimum of £5 per month towards your debt each month.
  • You have large unsecured debts to pay. Secured debts cannot be paid via a debt management plan UK.
  • Your credit score has suffered from missed payments.
  • You need that extra bit of help and receive support and assistance from financial educators and counsellors in breaking old habits and sticking to your new goals.

So if you think a debt management plan UK is the right option for you and it meets your specific needs, then contact Debt Support Service today. Our experts will work out a budget with you and fix your debt problems for a future free of debt.

Debt Management Plans in the UK

Debt Support Service – A helping hand for those struggling with debt

By | Dining

Debt has huge influence in our personal finances and is something that can feel overwhelming if not managed correctly. Situations in life may unexpectedly arise that can cause us to fall into debt, through no fault of our own. This may result in debt that can become a problem of its own, with compounding interest charges & penalties for missed payments etc. Debt might come from personal loans, medical debts, or due to an unforeseen family crisis. Debt management is very important, without adequate management of our finances, in such a situation one can rapidly lose control of circumstances and feel under real pressure. When kept at a low level, debt can appear manageable, but if not kept in check the debt can slowly mount up to become a much greater burden. If debt management becomes a problem for you, a well defined and organised plan needs to be drawn up. Seeking the help of professionals at this stage can really help lighten the load.

Debt Management Plans in the UKWhat is debt management?

In plain terms, debt management is the structuring and organisation of your budget on a day to day basis. With a debt management plan in place, you’ll have one monthly payment that goes out of your account that is then distributed between all of your creditors by a debt management company. A debt management plan is an effective way to take back control of your debt and stop it from snowballing. Debt management plans work best for unsecured debts such as credit cards, bank overdrafts and personal loans.

Implications of a debt management plan to your credit rating – Debt management plans do not have a lasting negative impact on your credit history. When you agree to close all of your credit accounts and establish a debt management plan, your credit history pauses. This has a temporary effect on your score, which is restored once you have left your DMP and the freeze on your credit rating is removed. In fact, a debt management plan will highlight to your lenders your positive action and willingness to pay off all your existing debts. DMP’s are usually monthly payments that are deducted directly from your bank account. Over a period of time these regular payments will have a positive impact on your payment history.

Another form of debt management is an Individual Voluntary Arrangement (IVA). IVA is a formal agreement between you and your creditors, whereby you agree to pay back your debts over a fixed period of time (typically five years). An IVA is a legally binding contract and for the duration that it lasts, your creditors cannot take further action against you. It is usually initiated by an insolvency practitioner such as a lawyer or an accountant who will charge you a fee.

Impact of an IVA on employment – An IVA should not normally adversely affect your job, except in certain instances with professions such as; solicitors, accountants, company directors etc. You may not be able to practice in such professions, or have restrictions / conditions placed against you whilst the IVA is serving. A good way to find out if your job is impacted via an IVA, is to check the terms and conditions of your contract or check with your professional membership body, trade union, or HR department.

Is an IVA suitable for me? –You should qualify for an IVA if you have a set amount still to pay towards your debts. However, it is important to consider carefully before opting for an IVA and checking to see if there are implications for your profession, therefore we advise to get professional help when applying.

Contact Debt Support Service today. You can call us or chat online with our experts to get the right solution for your financial problems.

Getting Help with your Debt - Debt Support Service

Getting help with your debt

By | Dining

A positive course of action for anyone struggling with credit card debt may well be to seek debt management via professional means. Debt management is a clear and effective way to eliminate unsecured debts, such as credit cards, bank overdrafts and personal loans – essentially any debts which are not secured by collateral. Debt management is an informal agreement between you and your creditors to repay your outstanding debts over a fixed period of time. Debt management companies can help significantly with this process, and can be much easier than attempting to arrange one with your creditors yourself. They will help you to create a debt management plan that sets out a clear path for you to eliminate your debt.

Choosing the correct debt management program is key, as this will give you the best possible chance of successfully achieving your goal of financial freedom. If you find yourself burdened with more debt that you can manage, and you are not able to meet your minimum monthly repayments, your creditors will log this on your credit history. This in turn will negatively affect your credit score, making it more difficult for you to initiate a new loan or credit card and may also increase the interest rates you are offered on such loans. So, before you begin struggling with your financial situation, max out all of your credit cards and find it difficult to get further credit, it is time to seek out debt management plan UK.

Debt Management Plan UK – Allows you to make one monthly affordable payment to your DMP provider who can then distribute funds to your creditors. A provider will likely charge an affordable fee for such a service. Debt management plan UK is available for non priority debts. In plain terms, this is debt not secured by any collateral (such as via credit cards). The provider usually negotiates with your creditors to reduce or even possibly waive the interest you are paying on your debt.

Getting Help with your Debt - Debt Support Service

 

Non profit or ganisations do exist who can ensure that all the money you pay into your debt management plan UK goes towards paying off your debts. If you choose a fee paying provider you should ensure that any organisation is FCA authorised and that they meet the industry standards. Some of the advantages of obtaining a debt management plan UK are listed here:

Counselling – The credit counsellors will provide initial counselling, going over your budget and debts, before relaying to you the options at your disposal. These counsellors have experience in mapping-out a debt management plan in a manner that your creditors can accept. They have long standing relationships with creditors and their working knowledge is invaluable.

Waived interest – A DMP provider liaises with your creditors to lower (or possibly even waive) any previously charged interest or fees. This will help you lighten your burden of debt and channel your repayments directly towards paying off your principal debt, thereby lifting you out of debt sooner.

Monthly payments – Making a single monthly payment to your DMP provider is much easier than keeping on top of a stack of bills from different creditors.

No frequent calls – By enrolling in a debt management plan in the UK, you are able to manage your unpaid debt with the help of the counsellors. This will in turn mean less phone calls from collection agencies and less stress next time the phone rings.

Debt Support Service can help you arrange a debt management plan UK to pay off your outstanding debts. We are a leading debt management company in the UK and we provide highly acclaimed debt support service. If you need help with your debt and would like someone to talk it over with – get in touch with us today by phone or live chat. You can also request a call back and our trained advisers will contact you and begin the process of resolving your financial problems!

Managing Your Debts - Debt Support Service

Managing your debts – Help from the experts

By | Dining, Fashion

At this moment in time, debt is omnipresent the world over. Individuals, companies, even entire nations find themselves in a state of debt. For a great many people, and particularly those exposed to social deprivation, debt is an inevitability. The road to debt often begins at an early stage in life, children may perhaps be exposed to their parents taking on loans and struggling with their own finances. In many ways (and particularly in the moment), debt can seem a good solution to the alternative of going without. Television and social media are very quick to offer us money and make it seem like a very attractive proposition that everybody is doing with great ease. Debt has become ‘normal’ and purchasing via credit is a perfectly socially acceptable thing to do. Credit cards, mortgages and loan companies are everywhere and are very keen to sell us their products… and before you know it, you too may become embroiled in debt!

A survey of 2042 individuals was conducted in March this year featuring all age groups and income levels across the UK. According to this survey, around 15% of the respondents were in debt to a tune of more than 50% of their EMI (estimated monthly income), and a staggering 32% of these were senior citizens. One out of five of those in debt had taken out a loan of some form to repay existing loans. Living a debt-free life requires good financial discipline and an acute awareness of your financial situation and your spending habits. Debt management companies UK can take control of your debt and create a plan to get you back on track and out of the red.

Managing Your Debts - Debt Support Service

 

Choosing the right debt management company

Choices can often be very subjective, what might look to be the best option for one person, may appear a poor choice to another, and vice versa. Below however we list some of the criteria we should all be seeking from a good debt management company:

Cost – Seek debt management companies UK who do not ask you for high monthly fees. You already have enough debt of your own to be dealing with and don’t want to be adding to your financial hardship.

Customer service – Your aim is to clear your debt and it’s vital that you get as much quality help and guidance as possible from fully trained and skilled professionals. A debt management plan is a three to five year plan, your advisors need to be helpful, courteous and friendly as you will be dealing with them for some time to come. This help should be available to you through the duration of your plan.

Education – Right now you may be looking to fix the situation you find yourself in, and that’s a great place to start. However, you need to also be looking for the kind of company that is able to pass on the knowledge of how to stay financially afloat into the future and how to best budget and manage your money going forward.

Tracking – The debt management company should give easy access to your account anytime you call or go online to check your progress.

Debt Support Service is a leading debt management company, you can be assured that you won’t be shouldered with any unnecessary costs and that our advisors are all fully trained and skilled in the job of helping people out of debt.

What a debt management company does

As with other debt management companies in the UK, Debt Support Service provides debt management help and guidance for those who come to us that are struggling with debt.

We help you to choose a plan that is affordable and which will help you pay off your outstanding debts. One solution for your debt problems is a debt management plan (DMP). A DMP assists you in handling credit card debt, paying them off at an agreed upon affordable rate to each credit card company. Debt Support Service provides debt management help by initiating and managing a DMP, (if it’s suitable to you) – free of charge.

What is a debt management plan?

  • Applicable only for unsecured debts such as credit card, medical bills and other debts which do not involve collateral.
  • Have a duration of three to five years
  • Attempts to reduce or waive ongoing interest and charges on your debt
  • Allows you to pay back your debt sustainably
  • Is not legally binding and allows you to adjust or make a lump sum payment at any point

Debt Support Service will help you achieve your dream of being debt free, we’ll provide monthly statements that show how much you have paid towards your debt. This helps you to keep track of your progress and how far you have to go. In order to get debt management help from us, all you need to do is request a callback and one of our trained debt advisers will give you a call. Contact us today to help us to solve your debt problems!

Debt Management through IVA

By | Food for thought | No Comments

Managing your finances effectively is an invaluable life skill, keeping us in control of our money and not falling into the all too easy trap of debt. Many of us have experienced the feeling of loss of control that accompanies spiralling debt, and the accompanying anxiety associated with it. If you do find yourself in this unenviable position, its always best to seek professional help. Unburdening yourself via the help of a professional can be very relieving.

Debt Support Service is available for you, providing fair and ethical consumer debt management. We expertise in helping people who are struggling with personal debt and financial problems, and are perfectly placed to help you find the right solution for your individual circumstance.

Debt management is a process designed to reduce and eventually clear you “unsecured debt” without the need to take out another loan, or risk collaterals such as your property or vehicle. Essentially it is an unofficial agreement with your creditors for the repayment of unsecured debt over a set period of time. Once you have agreed and committed to the plan, you’ll be required to pay your regular instalments to the debt management company.

Importance of debt management

  • Firstly is the protection and wellbeing of your family. Unmanaged debt and the stress it can puts under, has the real potential of damaging our relationships to those around us, in some cases tragically leading to the breakup of the family unit, with the potential of children being adversely effected from the resulting fallout. Seeking debt management help at the earliest possible opportunity stands us in good stead to avoid the worst outcomes of uncontrollable debt.
  • Secondly, debt management can help your physical health. Rising debts can lead to stress, insomnia, heart problems and exacerbate many other existing conditions. Taking professional help to manage your debt at the earliest opportunity will help to avoid any negative impact on personal health.
  • Thirdly, bad debt management costs you money. By reducing fees and high interest rates you’re directly saving yourself money and shortening the time you are indebted. Think of how you and your family could benefit from the money saved.

There are various options out there to help manage your debt issues. Of these, an Individual Voluntary Arrangement (IVA), is best suited to individuals looking for a formal alternative to bankruptcy.

What is Individual Voluntary Arrangement?

Individual Voluntary Arrangement (IVA) is a formal and legally binding agreement between you and your creditors to help you pay off your debts over a given period of time. It is approved by the court and your creditors have to abide by it.

How does an IVA work?

An IVA is arranged by an insolvency practitioner, they will typically be either a lawyer or an accountant. Based on the financial details provided by you (your debts, assets, income etc), an insolvency practitioner will propose a monthly figure that you’ll be required to pay and the duration that the arranged IVA will last. Creation of an IVA is successful if creditors holding 75% of your current debts agree to this arrangement. You will then enter into a legally binding arrangement, that any remaining creditors must also adhere to. An IVA will prevent your creditors from taking any action against you in the future, as long as you conform to the terms of your IVA.

Do I qualify for an IVA?

These are the qualifying IVA criteria:

  • Have a minimum of £80 of spare income each month that can be used to pay your debtor.
  • Have a minimum of two different debts.
  • Have the ability to back a minimum of 5p for every £1 debt owed to your creditors.

Note that these are guidelines and each case will be assessed individually.

How much does an IVA cost?

The Insolvency Practitioner plays the role of the nominee and supervisor throughout the period of the IVA and both these services have an associated cost. These costs in detail are:

Nominee fee – a fee charged by the Insolvency Practitioner who proposed the IVA plan to your creditors.

Supervisor fee – after paying the nominee fee, any remaining funds would be used to pay a supervisor fee.

Disbursements – these are additional costs incurred during an IVA that are paid to third parties, such as insurance, registration fee, maintenance fees etc.

At Debt Support Service, we offer comprehensive debt management through fully trained and skilled advisers with an extensive track record in the industry. We can work with you to efficiently resolve your debt problems, reducing your anxiety and relieving you of your financial worries.

Debt Management through IVA

How to Get an IVA

By | Food for thought

An Individual Voluntary Arrangement (or IVA for short) is a formal agreement drawn up by your creditors to help you manage debts. The usual approach is that your debt management company (DMC) will assign a licensed Insolvency Practitioner to work out the details with your creditors to establish what you can practically afford to cover. Due to this arrangement, you can expect to pay one reduced monthly fee and at the close of this IVA period (typically five or six years) the remaining unsecured debt will be written off. Incredibly, this can represent as much as 85{656fba9076fce85d9375a78485744480d9a16cad220bfa051b3a2faf0d56adbe} of your total debts.

Setting up an IVA is not a decision to be taken lightly though. If your creditors accept the proposal, it will be legally binding – so you should seek expert help and guidance before you make your final decision. The benefits of an IVA are more affordable repayments, the ability to stop creditors hassling you, legal protection from bailiffs, stopping attachment to earnings, the possibility of writing off remaining debts and eventually becoming debt free. During the IVA period your Insolvency Practitioner will review your finances on a yearly basis and provide an annual report.

Your debt management company will calculate the IVA payment by studying your income and expenses (without including any debt repayments) and figuring out how much spare cash you have left over each month. Be warned that while it can be a powerful solution to escape a surging debt load that you couldn’t otherwise settle, an IVA will also negatively impact your chances of taking out any credit in future. In other words, it will leave a negative mark on your credit rating – but fortunately this won’t be permanent.

A record of your IVA will be entered into the public Individual Insolvency Register (IIR) and will remain there until the arrangement is concluded. You should find that you can secure credit for living essentials or for purposes related to the wellbeing of your family; or If you are the owner of a company or are self-employed. However, since your credit rating will be much poorer than usual during the course of the IVA, you will probably find it much more difficult to take out any new credit. If successful, the interest charged is likely to be considerably higher.

If you’re hoping for credit totalling over £500 while the IVA is active, then you will need to seek written permission from the Insolvency Practitioner at your debt management company. The IVA itself will stay on your credit file for six years after the agreement started. Evidently, this is a serious step for under-pressure debtors who are looking for a comprehensive solution. It has worked for many of our clients. If you have any questions about the IVA system or want to further explore its suitability for your personal situation, please get in touch with Debt Support Service by phone: 0800 97 88 495 or email: info@debtsupportservice.co.uk today.