|
|
|
|
|
|
Debt Management in the UK
Debt management, as defined in the UK, is a course of action
where a reduction in repayment amount and/ or interest charges
is negotiated with unsecured creditors, when you are no longer
able to meet your repayment requirements.
For some background, it's interesting to note that in the UK 18%
of households are in arrears and are unable to pay their credit
bills or make monthly payments on time. According to recent UK
statistics, in the 12 months after personal debt exceeded £ 1
trillion for the first time in July 2004, total personal debt in
the UK has risen to £ 1.1 trillion. This amount is equivalent to
a £ 1 million increase every 4 minutes. Aside from the harsh
statistics the reality of bad debt for most people is an
increased level of stress, leading to ill-health, depression or
mental illness or, in extreme cases, even suicide.
For many people who find themselves in a situation where they
are simply no longer able to cope with their financial
obligations, a debt management plan can be a solution where they
can reduce their monthly repayments, avoiding bankruptcy, and
providing relief from the stress of being in arrears every
month. Furthermore your commitments are simplified and you will
be able to deal with your creditors as a whole instead of
individually.
Debtsolver offer debt management plans for individuals who are
resident in the UK i.e. England, Ireland, Scotland and Wales, as
well as the Channel Islands and Isle of Man. It should be
stressed that debt management plans are only available on
unsecured debts, and does not apply to secured loans such as
mortgages, some car finance packages, Hire Purchase agreements
and leases. If you fall into the latter category, we would urge
you to contact us anyway, as we may be able to find an
alternative solution.
Although debt management negotiations can take place informally,
in the end you as the debtor would enter into a new contract
with your creditors. You would need to provide evidence that any
previous contractual liabilities can no longer be met. This
means that the you would usually need documentary evidence of a
change of financial circumstances, for example due to job loss,
bereavement, ill-health or other crisis that has led to a
substantial drop in salary or income.
The reduced monthly payment is shared between your creditors,
who benefit because they can avoid either expensive legal
proceedings or court appearances, or paying fees to debt
collectors. Bankruptcy can be a costly and drawn-out process in
the UK, and debt management is usually a better financial
alternative for your creditors, so they will often extend
favourable repayment terms to avoid this.
It's important to realise that unlike debt consolidation, debt
management is not a new
loan; it's a negotiated settlement with
your creditors whereby you will usually make a reduced monthly
payment that is shared between them. Debtsolver's personal
advisors will help with the debt management process and can
handle difficult negotiations on your behalf. A Summary of the
Debt Management Process
Debtsolver will make a complete appraisal of your finances and
any other relevant circumstances, including monthly incomings
and outgoings, as well as reviewing your list of creditors. It
will help if you can provide any other relevant evidence such as
letters from your employer, your doctor, medical bills or any
other documentary evidence of the circumstances that led to your
inability to meet your debts.
We will then summarise this information to come up with a
monthly payment schedule that you can reasonably afford and
offer to your creditors.
We will then approach your creditors on your behalf with a debt
management plan, and usually be able to negotiate a reduced
monthly payment plan.
The plan will continue until your debts are cleared or until you
wish to voluntarily end the arrangement. The most common reason
for this being an improvement in financial circumstances
enabling a client to leave the plan and revert to their original
monthly payments.
Debt Management Plan Criteria:
For us to be able to negotiate a debt management plan on your
behalf, you would usually meet the following criteria:
Due to an unforeseen change in circumstances, it's no longer
possible for you to meet your financial obligations.
You are ready to commit to a negotiated monthly repayment that
you can afford, and that your creditors are satisfied with, and
in any case not less than £ 200 per month. Your total
commitments should not exceed £ 10,000.
You have at least three different creditors with whom you have
unsecured loans or debts.
A debt management plan can reduce your monthly outgoings, and
simplify all your different repayments into one monthly lump
sum, provided certain criteria are met. As well as saving you
money, this can reduce the stress and anxiety of dealing with
multiple creditors. For more details about a debt management
plan, or for any other enquires, contact us at Debtsolver UK.
About the author:
Debtsolver is a UK company providing resources and information
on Debt
Management UK, Debt
Consolidation UK, Debt
Problems UK and IVA & Debt
Advice
|
|
|
|
|
| Advertisements Promising Debt Relief May Be Offering Bankruptcy |
| Cautions consumers about ads in newspaper, magazine and telephone directories that offer quick fixes for debt problems. |
| www.ftc.gov |
|
| Welcome to Debt Relief International |
| Welcome to the web site of Debt Relief International. |
| www.dri.org.uk |
|
| Debt relief steps, your free guide to debt help. |
| Articles on debt relief, and credit management and repair. |
| www.debtsteps.com |
|
| Factsheet - Debt Relief Under the Heavily Indebted Poor Countries ... |
| The HIPC Initiative is a comprehensive approach to debt reduction for heavily indebted poor countries pursuing IMF- and World Bank-supported adjustment and ... |
| www.imf.org |
|
| Special report: debt relief | Special reports | Guardian Unlimited |
| February 6: A year ago the Guardian set out to track the west's promises of action for Africa on aid, trade, health and debt relief. As G8 finance ministers ... |
| www.guardian.co.uk |
|
| Debt Relief Options - Findlaw for the Public - |
| Welcome to Debt Relief Options. This section contains information about the ... To begin, select one of the Debt Relief Options topics from the list below ... |
| bankruptcy.findlaw.com |
|
| William Brewer |
| The Brewer Law Firm. William E. Brewer, Jr., Attorney at Law Board Certified Consumer Bankruptcy Specialist. 619 N. Person Street Raleigh, NC 27604 ... |
| www.debtrelief.com |
|
| Debt Relief - InCharge Debt Solutions |
| There are many ways to get out of debt, for good, and it may be easier than you think. The first step is knowing your options, the second step is taking ... |
| www.incharge.org |
|
| Economic Policy and Debt |
| May 2006, IMF And World Bank Support Cameroon’s Completion Point Under The Enhanced HIPC Initiative And The IMF Immediately Grants 100 Percent Debt Relief ... |
| www.worldbank.org |
|
| Economic Policy and Debt - The Enhanced HIPC Initiative |
| The Initiative’s debt-burden thresholds were adjusted downward, which enabled a broader group of countries to qualify for larger volumes of debt relief. ... |
| www.worldbank.org |
|
| Debt relief - Wikipedia, the free encyclopedia |
| Debt relief is the partial or total forgiveness of debt, or the slowing or stopping of debt growth, owed by individuals, corporations, or nations. ... |
| en.wikipedia.org |
|
| Debt Analyzer, Debt Reduction Software, Home Page |
| Debt Elimination at its best! Potential savings of hundreds or thousands of dollars! Build debt reduction, timed elimination or consolidation schedules. |
| www.debtanalyzer.com |
|
| Superior Debt Relief |
| We help you get rid of credit card debt much faster than you may believe possible with credit card debt settlement and negotiation tactics, providing debt ... |
| www.superiordebtrelief.com |
|
| Debt Relief - Social and Economic Policy - Global Policy Forum |
| Aid Inflows, Debt Relief Yet to Translate into Reduced Poverty (March 20, 2006) ... Fearing that the IMF could tie debt relief to economic benchmarks, ... |
| www.globalpolicy.org |
|
| Debt Relief - Global Policy Forum - Social and Economic Policy |
| Debt Relief - Global Policy Forum - Social and Economic Policy. The Debt Relief Page Has Been Moved to: ... |
| www.globalpolicy.org |
|
| BBC NEWS | Business | Q&A: African debt relief |
| BBC News looks at the progress of international debt reduction efforts, and the sticking points which continue to hamper the process. |
| news.bbc.co.uk |
|
| Debt Relief Australia - Start Reducing Debt Today! |
| Debt Relief offers Australians in debt assistance with finding the most appropriate debt relief solution. |
| www.debtrelief.com.au |
|
| Debt Consolidation Australia, Debt Relief & Bankruptcy Information |
| Specialising in debt agreements, mortgage refinancing and bankruptcy. Company profile, calculators, solutions, media releases, testimonials and existing ... |
| www.foxsymes.com.au |
|
| Oxfam - Debt and Aid - Debt Relief for Nicaragua: breaking out of ... |
| Oxfam policy paper on relationship between international debt servicing and poverty. Linked to table of contents and also zipped for download. |
| www.oxfam.org.uk |
|
| What debt relief means for Africa | csmonitor.com |
| This weekend's $40 billion debt cancellation deal could spark major improvements in the lives of the world's poorest people. |
| www.csmonitor.com |
|
|