It's a common occurrence to spend money on a credit card with
the intention of repaying the money over a longer period of time.
Some of the interest rates for credit cards can be phenomenal, with
the best interest free balance transfer credit card lasting almost
2 years. It can mean that you can avoid interest fees, for a short
period, for thousands of pounds and help you to repay your credit card debt.
There are various ways to cut your credit card debt. For people
who don't have severe credit card debt and are able to afford to
repay the debt over a 12 month, or shorter, period then the
interest free offer will help repay the outstanding debt and clear
the balance. As long as the interest free period is live and the
balance is being reduced each month then you will be clearing your
credit card debt. But, if you're only making the minimum payment to
your credit card debt, then whilst the interest free period will
mean the debt isn't getting larger, you won't be clearing the
balance in time. This means you may have to balance transfer
An interest free balance transfer is an introductory offer to
entice you to join the credit card company. Most people contact
Debt Support Trust when they can no longer balance transfer their
credit commitments and need a debt solution.
If you are unable to balance transfer your credit card debts
then call Debt Support Trust on 0800 085 0226.
You can choose to consolidate multiple credit cards into one new
account. This would mean one payment each month to one company and
with one rate of interest. This can sometimes be the best option to
deal with debts. The problems arise when the total amount of debt
is too large and it's still too difficult to repay the full amount
of the debt by the end of the interest free period.
Other issues which can occur is that the new rate of interest is
higher than previous amounts. This means it will be more costly to
borrow the money and harder to become debt free.
Sometimes, when the debt is on different credit cards it can
seem hard to manage so it's best to consolidate credit card
debts. If you're balance transferring to simply "tread water"
and by yourself time then seek professional debt advice to help you
become debt free.
When you can no longer balance transfer you need to get debt
help. Avoiding credit cards and letting the debts mount will only
increase the total debt. A debt advice charity like Debt Support
Trust can help you with a range of money management tools and even
help organise debt solutions to have you out your debt problem in 6
years or less.
The first step is to call Debt Support Trust on 0800 085 0226
and speak to a friendly advisor. Once we know your financial
situation we can advise you which debt solution would be best for
When searching for help regarding debt a common belief is that
bankruptcy is the only advice available. In reality, there are
numerous debt solutions which can help resolve money worries. At
Debt Support Trust our charity advice line offers debt help on a
wide range of solutions. So, if bankruptcy is the correct solution
you will be speaking directly to our bankruptcy advice line and will
be offered tailored advice based on your specific financial
If you would like to check whether bankruptcy is the right debt
solution for you, why not try the 10 minute debt test? Or you can
call our debt charity advice line specialists today on 0800 085
Before deciding whether you should or shouldn't go bankrupt, you
must seek impartial debt advice from a registered debt charity.
This ensures you're not making the wrong decision which could
affect your employment, assets or credit file.
If you are struggling to meet your minimum contractual
repayments to your debts then bankruptcy could be the correct
option. However, there are other factors to consider when
determining the right debt solution for you. For example, do you
have any assets with equity, such as a house? If so, you could be
asked to sell your house in bankruptcy to repay the debt. In other
debt solutions you could retain your property and become debt
If your are in employment then you could be asked to make a
contribution to your bankruptcy each month under and Income Payment
Order. This arrangement lasts for 3 years, despite bankruptcy only
being 1 year.
There are other pros and cons of entering bankruptcy to deal
with debts. Bankruptcy may not hold the same implications for one
person as it does for another. There are also two routes to enter
bankruptcy so speak to our bankruptcy advice line today on 0800 085
0226 to get specific bankruptcy help.
There are often questions that people considering bankruptcy
have. Some of the most common questions are:
Bankruptcy costs vary depending on the route you're deciding to
enter. If you are suitable for a DRO route to bankruptcy then the cost is
£90. Otherwise the cost is £700 at the local court. If you're on a
low income then the bankruptcy application cost at your local court
could be reduced to £525.
In Scotland, the bankruptcy application cost is £200.
You can make yourself bankrupt by going to your local court or
speaking to a money advisor who can help you organise a DRO. You
should give Debt Support Trust a call on 0800 085 0226 to discuss
which route is best for you.
Yes. We can help you determine whether bankruptcy is the right
debt solution, which route is suitable and even help with
You can email us for assistance email@example.com
or call 0800 085 0226.
When somebody else is making you bankrupt you should seek debt
advice as quickly as you can. Time is generally of the essence to
help you avoid bankruptcy, if that is what you want. If somebody
else is making you bankrupt then you do not have to pay the
bankruptcy fees, which would save you money
The latest TV ad from controversial payday loan company Wonga
has been banned by the Advertising Standards Authority.
The ban comes after the ASA received 31 complaints from from
viewers claiming the ad was "misleading".
Payday loan companies have been criticised for getting people
into debt through high interest repayments.
Some people argue it's far too easy for people to take out
payday loans, with most not doing credit checks.
The Wonga advert claims to explain how the interest rate they
have to show is almost misleading about the real cost.
The advert says,
"Right, we're going to explain the
costs of a Wonga short-term loan"
"Some people think they will pay
thousands of per cent of interest"
Many viewers felt this was an attempt by Wonga to "trivialise"
RAPR and the real cost of taking out a payday loan
The recent complaints over the Wonga advert were due to four
main points; the ASA listed these as,
The ASA agreed the advert was not incorrect but did feel it was
misleading, they said,
"Whilst we acknowledged that viewers taking out and repaying the
loan within the stated time period would not repay 5853% of the
loan, we were nevertheless concerned that viewers would be left
without a clear understanding of how the information in the
on-screen text could be applied to a Wonga loan, given the ad's
assertion that the representative APR was not indicative of the
cost of the loan.
Before anyone takes out a payday loan it's important they have a
clear strategy on how they will repay the high interest loan.
If it's possible to borrow from friends or family this route
should be taken because it will save them money and is less likely
to lead to debt problems.
New research commissioned by the Sutton Trust has found that
almost three quarters of students completing their studies will
never repay all of the money they borrowed. Most people will be
repaying their student loans well into their 40s and 50s as the
vast majority fail to repay their loan. While student loans are
different to regular unsecured loan debt problems, it still
represents a problem for society with increasing numbers of people
Student loans are used to cover living costs and tuition fees in
England, Wales and Northern Ireland. The Institute for Fiscal
Studies wrote the recent research and considered the knock-on
impact of tuition fees increasing since 2012.
The study suggested that the average student in England would
leave further education owning almost £45,000.
The cost of tuition fees has increased and this is directly
impacting the amount of money students have to pay in order to gain
their qualification. The change in debt has risen because of the
new fee structure rising on average from £24,754 to £44,035.
The tuition fees are the main cause of concern for students in
England with fees rising from £3,000 in 2011 to £9,000 in 2012.
However, students don't have to repay the loan until they earn
at least £21,000 per annum, whereas it used to be £16,910. The
interest rate on the loan has increased too. The new interest rate
is 3% which is lower than many unsecured loans, however if the loan
isn't being repaid monthly then the debt is simply increasing.
The short answer is yes, student loans can be written off. A new
style student loan can't be included in a bankruptcy, IVA or
Trust Deed but they could still be written off.
If you have not repaid your loan after 30 years of borrowing the
money then the outstanding balance will be written off. You have to
pay a percentage of your income above the threshold back to the
loan once you're in employment, however outstanding amounts after
30 years will be legally written off.
The new research suggests that 73% of people will have some of
their student loan written off, compared to 32% of people in the
old system. The typical amount of money which could be written off
is around £30,000.
If your first loan was taken out during the 2005/06 academic
year in England, Wales or Northern Ireland then any outstanding
loan is written off aged 65, instead of the new 30 year rule.
In Scotland, if your first student loan is pre 2005/06 then any
loan remaining to be repaid is written off aged 65. From 2006/07
any debt to student loans will be written off after 35 years.
We receive enquiries into the charity from time to time
requesting information and one interesting question we received
was, "Can I enter a short term Trust Deed"?
A Protected Trust Deed is typically a 4 year debt solution,
however for some people the debt solution can be shorter. The
solution used to typically be 3 years but changed in November 2013.
A short term Trust Deed is also known as an equity or lump sum Trust Deed.
Some people in Scotland are suitable to enter a Protected Trust
Deed to resolve troublesome debt problems. The solution allows a
person to make one affordable monthly payment to their debt each
month, usually for 4 years and at the end of the solution any
remaining debt is written off.
In a Trust Deed assets with equity must be released, however
people are able to keep hold of assets like their house and
The interest and charges in a Scottish Trust Deed are frozen and
written off at the end of the solution.
A Trust Deed may not always last for 48 months, although it can
last for longer too. For a lump sum Trust Deed the length of time
can be as short as 6 months, although it's usually around 1 year in
order to conclude and close the solution.
The short term option is a proposal where you offer one payment
as a full and final settlement. If you can afford to repay 70% or
more of the debt in a full and final settlement you may wish to try
and do this informally first by contacting each creditor and
offering them a pro-rata offer. If your lump sum is less than 70%,
or you want the legal protection from your creditors, you may
consider entering into a Trust Deed to resolve your debts.
When a Trust Deed proposal is suitable it is drafted and offered
to each of your creditors. If you are unable to make any monthly
contributions towards your debt because you have no disposable
income each month, then a lump sum payment could be accepted.
Usually short term Trust Deed plans where a lump sum is offered
to the creditors, the money is offered from friends and family or
from the sale of an asset, like a house. For example, if the
Debt - £30,000
Lump sum amount - £15,000
Length of time in the Trust Deed - Under 1 year
A lump sum Trust Deed would have no reason to last for 4 years
because it would only add extra charges to the case without any
extra money being brought in for the creditors.
If you would like specific advice on an equity only Trust Deed
then you can call Debt Support Trust on 0800 085 0226, or complete
our debt test to find out if a Trust Deed would be the right debt
For some debt solutions, coming into inheritance can result in
people being made to offer their windfall into the debt
If someone knows they are going to be coming into money it can
change which debt solution is best for them and should be made
clear when receiving debt advice.
An insolvency debt solution is where a person is unable to repay
the full amount owed or meet their monthly contributions towards
their debt on time. It's these solutions which could see people
lose any inheritance which is left to them by a loved one.
In an IVA, Trust Deed or Bankruptcy solution,
any inheritance, lottery win or general windfall must be provided
for the benefit of the creditors. This means you could repay all of
the debt and any fees or charges.
Both the English and Scottish version of bankruptcy will affect
a debtor the same way in regards to inheritance.
When someone enters bankruptcy or sequestration any disposable
income or available equity must be made available throughout the
term of the solution. So, if somebody enters the solution and comes
into money during the term of the solution, they would likely be
asked to provide this towards the bankruptcy specialist.
While the debt solution will last for 1 year in bankruptcy, any
available money received within that period must go towards
repaying the debt.
When entering either an IVA or a protected trust deed a person
in debt is agreeing to repaying what they can afford over a fixed
period of time. This means the payments can change during the debt
A trustee will be appointed to monitor the finances, negotiate
with creditors and essentially take control of their assets.
It would be the job of the insolvency specialist to make sure
the creditors got back the money they were due and anything extra,
if that was possible.
Anyone coming into inheritance while in an IVA or protected
trust deed will need to pay it towards the debt along with the fees
for the debt solution.
The festive season is often a time to celebrate with friends and
family, but it's also an expensive period which can lead to long
term debt problems.
At Debt Support Trust we help people with a wide range of debt
and money problems. These money problems can be anything from
problems paying their rent, through to the most severe financial
The Christmas period is often a time for celebration, but come
January it can be a depressing and frightening experience being in
debt. If you're already in debt and want to wait until Christmas
has passed before dealing with your debt, then Debt Support Trust
can help you too.
The desire to meet Christmas expectations means people can
become indebted over the Christmas period. We notice an increase in
the number of people using payday loans to buy Christmas presents,
however they don't know how they will repay the loan in
When the payday lender - or any other company lending money -
doesn't receive their money back on time then they will continue to
contact you until they get their money. It can also impact on your
Our top 3 tips to help you have a great Christmas financially
1. Budget: Set a budget of what you can afford.
The budget should include extra Christmas nights-out and presents
too. This way you'll know exactly how much money you have available
2. Buy in advance (if possible): When you leave
shopping until the last minute you may know what you want to get
your loved ones, but the cheapest shops may have sold out. Buying
in advance means you can get the cheapest prices.
3. Shop around: You should shop around for the
best price. The high street is in competition with the internet and
often the price will vary. Look around and check if you're really
getting the best price.
The most important tip is not to spend what you can't afford to
easily repay. The majority of people in the UK use credit, but it's
whether that credit is affordable that really matters.
If you're unsure how you will afford to repay your Christmas
spending, or think that you may have debt problems early in the New
Year, then speak to a Debt Support Trust advisor.
You can phone Monday to Friday 8am - 7pm on 0800 085
0226. Alternatively, you can complete a debt test
questionnaire and get some online debt help.
New changes to the way Scottish Trust Deeds are administered
have been introduced for people with debt problems. For people
thinking of entering a Trust Deed in Scotland, there's good and bad
The Accountant in Bankruptcy is a supervisory body which
monitors the Trust Deeds registered in Scotland. The Accountant in
Bankruptcy has been working to change how Protected Trust Deeds are
The changes have meant the length of time a Trust Deed lasts is
often extended. Who can enter a Trust Deed and how much unsecured
debt is outstanding has changed too.
We mentioned in September about the impending changes to Trust
Deeds but there have also been some extra surprises.
We expected that Trust Deeds would move from a 3
year to a 4 year debt solution. This
excludes people who are entering an equity only or lump sum Trust
Deed. Protected Trust Deeds will now be assessed on the Common
Financial Statement too.
The AiB will have more powers to reject Protected Trust Deeds
which are not in the best interests of the person in debt. A 4 year
Trust Deed, when a 4 year debt arrangement scheme would be more
suitable, for example, would mean the trust deed would be rejected
by the AiB, even if the creditors said yes.
Similarly, a person who is suitable for a LILA
Bankruptcy will not be allowed to enter a Trust Deed, even
if they would prefer this route. A LILA should mean a person cannot
afford to repay anything towards their debt, so a Trust Deed should
not be appropriate.
Trust Deeds in Scotland are advertised in the Edinburgh Gazette,
however the changes mean there is no need to advertise the Trust
Deed any longer. Instead, a person entering the Scottish debt
solution will automatically be listed in the Register of
The fees for the Insolvency Practitioners will change too. An
Insolvency Practitioner will have to work on a nominee fee and then
a supervisory fee. The supervisory fee will mean they will receive
a percentage of what's recouped, instead of a flat fee. This should
mean the creditors get more of the money back.
If you're already in a Trust Deed you don't have to worry about
the recent changes, as it's only impacting people moving
Anybody entering a Trust Deed from today onwards will be in the
solution for 4 years, instead of 3. However, it's not all bad news
as people can enter a Trust Deed if they have £5,000 of unsecured
debt or more, instead of the typical £10,000.
The changes to Scottish Trust Deeds is an interesting
development and certain to allow increasing numbers to enter a
solution to resolve debt problems. There are also other debt
solutions for people in debt, such as a debt arrangement scheme or
We help people in debt across the whole of the UK with telephone
and internet based support. For debt help from Debt Support
Trust please call 0800 085 0226.
When debt problems occur people we help don't
want pity or sympathy, they want advice, guidance and above all
else, a debt solution which will help get debts resolved.
To resolve debt worries we start by introducing our debt
advisors. Our debt
advice team listen to financial problems so they can provide
debt solutions which can help you become free of debt. Everybody we
help with debt problems receives tailored debt support.
There are various routes to become debt free. There is always a
way out of debt problems, but the best route depends on your
personal and financial decisions.
Some debt solutions can help you become debt free within 1 year,
while others can take 10 years, or more. The route to become debt
free, which will be best for you, will depend on your financial
situation. Your income and expenditure will inevitably determine
how much disposable income you can afford to repay towards your
debt each month.
Borrowing money and repaying that money can be easy at first,
but if change happens, such as loss of employment or an over
reliance on credit, then it can be impossible to repay the debt on
time. When you speak to Debt Support Trust, we don't focus solely
on what you have to contractually pay but instead what you can
afford to repay.
Once we understand what you can afford to repay every month and
how much unsecured debt you have we discuss your assets. Your
assets can include a house, car, money in your bank, stocks, shares
or bonds, as well as other assets with value. We consider whether
there is equity in any of your assets. Equity is the difference
between the value of your asset (e.g. your house) and what's
outstanding (e.g. the mortgage). Depending on your debt solution,
your property may not need to be included. Your debt advisor at
Debt Support Trust will be able to explain what will happen with
your debt solution.
The first step to resolve debt problems is to seek professional
debt advice. You can speak to Debt Support Trust on 0800 085 0226.
Our charity debt advisors will help you resolve your debt problems
and regain control of your finances. We caringly listen to your
problems and offer practical advice. You can decide whether you
wish to proceed with our advice, or not.
To get debt help from Debt Support Trust, please telephone our
advice line on 0800 085 0226.
In the last year there have been 10,000 homes repossessed in the
Greater Manchester area. This is a direct result of debt
problems in Manchester people struggle with.
There are debt solutions which can help people in debt keep
their house and resolve debt, like credit cards and overdrafts.
Repossessions occur when the mortgage repayments are not met on
time. A secured debt, like a house is a priority expenditure and
should be paid before unsecured debts like a credit card or
The Council of Mortgage Lenders statistics reveal 7,700
properties were repossessed in the 2nd quarter of 2013
and that over 157,000 mortgages are in arrears too.
Repossessing a house is usually the last stage for a mortgage
lender. The mortgage provider will often refer you to a charity to
get debt help first, as long as they are aware of your financial
If your property is repossessed and then sold, the mortgage will
be repaid first, then the fees for repossession. If there is any
money left you will be given this back. Should your property be in
negative equity then any shortfall on the property will be passed
onto you as an unsecured debt.
Contact Debt Support Trust if you would like debt help from a
registered debt advice charity.
In Manchester, the bedroom tax is also impacting on people's
ability to live in rented accommodation too. The under occupancy
tax on social housing means people are receive 14% less housing
benefit for 1 extra room and 25% less for 2 extra bedrooms.
The shortfall in housing benefit for people claiming the state
support means arrears are rising. Housing associations and social
landlords are being forced to take action, including eviction.
The bedroom tax means debts continue to rise for people who
can't move property and don't have the available income to pay the
Whether you live in a rented or mortgaged property, Debt Support
Trust can help. We'll assess your financial situation to understand
what you can afford and provide a range of advice, tips and debt
You can receive support by telephoning 0800 085 0226 or
completing our debt analyser below and asking for a call back.
© Debt Support Trust 2010-2013