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UK Wide Debt Advice Charity
Call us at 0800 085 0226
E-mail: contact@debtsupporttrust.org.uk

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Payday Loan Companies Face Crack Down

Members of Parliament have created a new law which will give industry regulators the power to cap the annual interest rate payday lenders can charge.

Prior to this ruling some payday lenders are charging up to 5,000% annual interest on their loans. The demand for Payday loan companies has increased as the availability of other more affordable credit has been reduced. However, this form of credit comes with a warning.

Borrowing £100 and repaying £125 seems like a great deal for a short term debt problem, however, the average payday loan is considerably larger (£300). If this debt is not repaid on time then there are fees and charges which will be applied. Over a short period of time the debt can swiftly increase if it's not repaid on time.

The Financial Conduct Authority will have the responsibility to cap fees and charges but these are not likely to take place until 2014. However, there are no plans to minimise the number of rollover periods.

Don't Borrow For Christmas

With Christmas just around the corner it's expected record numbers of people are going to borrow money from a payday lender to afford their Christmas.

The short term benefit of Christmas can often mean months of repaying the debt, or worse still, to afford the payday loan you may have to borrow on top of debt. This means that the debt will only grow.

The period between January and April are our busiest at the charity providing debt help. If you're expecting a Christmas debt problem then get in touch with Debt Support Trust and we will help you resolve your debt problem and discuss suitable debt solutions.

You can get in touch with Debt Support Trust about a payday loan, or other debt, by telephoning 0800 085 0226.

Tuesday, December 11, 2012
Debt Support Trust
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Bankruptcy and Divorce

Bankruptcy and Divorce: A Guide to Understanding what Debt and Divorce can mean for you.

Being in debt can place an enormous strain on relationships with friends, family or your wife or husband. This can lead to problems with social relationships and even be a catalyst for divorce.

When divorce occurs it's a very difficult time. Bankruptcy and divorce is a problem which many couples wish to rectify quickly and understand how the debts will be resolved.

Divorce can occur and the financial change can be costly. This can mean bankruptcy takes place after the divorce. Alternatively, bankruptcy can happen before or during the divorce proceedings.

We discuss all of the different scenarios to give you a little more information. If you want specific information about Bankruptcy then please visit our bankruptcy page.

Divorcing and Assets?

When divorcing there is a dividing of assets and each person will be given their fair share. It's important to realise that our charity is not an expert in divorce, but instead we can give you guidance and support if you are divorcing and there is also debt.

Usually the marital home will be where the main asset will exist. The house may have equity which could be used to pay unsecured debt. If one person is planning to remain in the marital home but there is equity, then this can often become a difficult matter.

For instance, if a husband and wife divorced and the wife was remaining in the marital home with the children and the husband was leaving, then any equity in the house would need to be considered. Should the husband decide to enter bankruptcy and the property has equity about £5,000 which would belong to the husband then the Official Receiver in bankruptcy would want to release this, either via a third party buyout or via selling the property. This means the wife wouldn't necessarily have to sell the house but she would need to purchase the husband's share of the equity.

It's always best to get specific, tailored debt advice for your situation from a qualified debt advice. Why not call us today on 0800 085 0226 for more information about divorce and bankruptcy?

Who is liable?

In short, the person liable for the debt is the person who took the money out in their name. If one person borrowed credit but both parties used the credit then the person who borrowed the money would be liable to repay it.

What about joint debts?

Often couples will have joint debts which they have to manage during and after divorce. Each party is liable for the full amount and often couples will agree to split the payment so as the full £20,000 is repaid without default.

If there is a joint debt and one person can't repay the debt or they decide to enter bankruptcy, then the other person will be liable to repay the full amount. So, if a husband and wife jointly borrow £20,000 from the bank, then each individual will be liable for £20,000. If the wife enters bankruptcy then the husband will be liable for the £20,000. The bank would pursue each person for the full amount.

Is my husband / wife liable for my debt?

A popular question when people are divorcing is whether or not the other party would be responsible for their partner's debt. A credit card, personal loan, store card etc is typically in one person's name. This means that the person who borrowed the money is liable for the debt.

Debt Advice about my Divorce

If you think bankruptcy may be your only option and you are considering divorce or you have a debt problem which arose because of your divorce, then our debt advice charity can help.

You can get immediate and confidential debt help today from Debt Support Trust by telephoning 0800 085 0226. Our friendly debt advisor will be glad to provide you with tailored advice on your money problems.

Wednesday, December 05, 2012
Debt Support Trust
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Advice on Debt Management

We asked Liam from Manchester to explain his thoughts on asking for advice on managing debt based on his own experience. We helped Liam to manage his debts in a structured plan. The debt management plan enables Liam to pay one monthly payment to one company and some of the interest and charges were even frozen.

If you would like debt help then speak to a debt advice charity. Debt Support Trust has helped thousands of people in the UK with their debt problems. You can call us on 0800 085 0226 to take the first step.

Getting Advice on Debt Management: Liam's Story

I never thought managing debt would be difficult. I'm 29 years old, I own a small car, work full time and live in a rented flat with my wife. So, I decided I wasn't suitable for debt help.  My debt was only £7,000 but I just couldn't make the payments.

I figured I was spending too much and decided to sit down, write out my income and expenditure and understand once and for all where all my money was going.

I had balance transferred my debts multiple times before realising I couldn't get any more deals. I was stuck on the current credit card. My minimum payment to my debt each month is about £300. When I reviewed my income and expenditure I realised, that without any "fun money" I only had £150 that I could afford to pay towards my debt each month. I had been borrowing money from friends and family, or adding more to my credit card, in order to meet my payments.

I needed advice on debt.

Advice for the Debt Management Solution

I realised then I had a problem which could only ever get worse.  I needed to draw a line in the sand and get help. A company contacted me about a debt management plan and I looked into the solution knowing I needed more advice on debt management.

The debt management plan seemed like a brilliant option. It was flexible and affordable each month and I would be debt free eventually. The interest and charges weren't guaranteed to be frozen, but they would ask. Some of my interest and charges were frozen in the end.

The only problem was that the company were going to charge me a setup fee and a monthly management cost. I worked it out that my debt management plan would take a year longer because of all the fees and charges. So, I looked about for advice on a debt management solution where there were no costs or fees.

Free Advice about Debt Management Solution

The debt management advice from Debt Support Trust was free as they are a charity. I called the free phone number (0800 085 0226) and spoke to an advisor. They took me through all of my options and ensured I got a free debt management plan. They agreed the debt management would be the best option.

I didn't have to pay for any advice on debt management or for the setup of the debt management plan.

I should now be debt free in a little over 4 years!

Wednesday, November 28, 2012
Debt Support Trust
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Solutions for debt

There are different solutions for debt available and in many cases people will have two or maybe three options on the best route out of debt. The best solution for debt will depend on an individual's personal and financial situation, which is why tailored debt help is essential.

Debt Support Trust is a registered charity and can provide tailored debt advice. For free debt advice from Debt Support Trust please telephone 0800 085 0226 or complete our debt analyser below.

 

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What are the solutions for debt?

The various options to become debt free will depend on your personal circumstances and also your financial situation.

For instance, some debt solutions require you to repay money towards your debt, but if you are unemployed it's likely you will not be able to do this. So, before we look to provide tailored advice we like to get to know you better so as we're providing accurate debt advice.

The solutions for debt will vary depending if you live in England, Wales or Northern Ireland or if you reside in Scotland. This is because there are different laws which govern debt solutions in each part of the UK.

England, Wales & Northern Ireland

Debt Management Plan

IVA

Bankruptcy

Scotland

Debt Arrangement Scheme

Protected Trust Deed

Sequestration

Which is the best debt solution for my debt?

The solution you enter to deal with your debt problem will ultimately be your decision but by speaking to a qualified debt advisor at Debt Support Trust you can discuss the positives and negatives of each available solution. Advisors at Debt Support Trust will discuss why each solution is applicable and how you can enter the solution.

When you speak to Debt Support Trust we explain each debt solution in detail and you can ask questions about the solutions so you better understand the solution. This means you can make an informed decision about the best route forward.

Debt advice solutions to debt

Our advice is free, confidential and you are under no obligation to proceed with our recommended solution. Debt Support Trust is a registered charity and is open Monday to Friday between 8am and 7pm.

If you would like to speak to a debt advisor for free please call 0800 085 0226 or complete our debt analyser for online debt advice.

analyseyourdebt

Tuesday, November 13, 2012
Debt Support Trust
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Government Debt Solution

With increasing numbers of companies advertising about "Government-backed" debt solutions we've decided to write an article to clear up the confusion.

Some debt solutions are described as formal, while others are informal. When entering into an informal debt solution, a request is made to freeze or reduce interest and charges, however this cannot be guaranteed.

An informal debt solution, such as a debt management plan, will continue until all of the debt has been repaid. It's informal because either you or your creditors can start and stop the agreement with one month's notice.

A formal debt solution uses British laws to set an arrangement in place which both you and your creditors are bound by. Laws are created by Government, however, the Government is not backing people entering the solution.

IVA Government Help

A debt solution which is sometimes considered as a Government debt solution is an Individual Voluntary Arrangement (IVA). The IVA is a formal debt solution which enables somebody with debt problems, and who meets the criteria, to repay a percentage of their debt over 5 years. At the end of the solution any debt which has not been repaid, along with interest and charges, will be legally written off.

This formal debt solution provides the legal protection from your creditors. The Government is not endorsing this solution or recommending it, however the Government has created the laws by which the solution is managed.

An IVA is not a debt solution to enter lightly, so comprehensive debt advice should be sought before proceeding with this solution. You can speak to our debt advice charity advisors on 0800 085 0226.

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Trust Deed Scotland Government

The IVA debt solution is only available in England, Wales and Northern Ireland. In Scotland, the equivalent debt solution is a Trust Deed.  The Scottish Trust Deed usually lasts for 3 years and is similar to the IVA. Any debt, interest and charges which have not been repaid at the end of the solution will be legally written off.

Once again, the Scottish Government is not backing this debt solution but the Trust Deed is governed under Scottish law, which helps guarantee that you will have legal protection from your creditors.

Bankruptcy Government

Bankruptcy is also a formal debt solution which offers the legal protection from creditors. There are positive and negatives of entering bankruptcy but the Government does not encourage people to enter this solution.

The legislation which is in place ensures that a person entering bankruptcy can eventually be discharged and debt free again. Please seek professional debt advice from a charity before proceeding with a bankruptcy debt solution.

Charity Advice on Government Debt Solutions

If you would like more information about debt solutions and whether the Government is backing them, please telephone Debt Support Trust. We are a registered debt advice charity helping people throughout the UK.

You can call Debt Support Trust free on 0800 085 0226. Alternatively, if you would like confidential online help please complete our debt analyser below.

analyseyourdebt

Thursday, November 08, 2012
Debt Support Trust
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Help Me With Debt

Speak to debt charity, Debt Support Trust, free on 0800 085 0226 if you need help with your debt problems.help-me-with-debt

If you're suffering with debt then this advice page will give you a number of options. You can get quick and immediate debt help right now by completing our debt analyser form or by telephoning 0800 085 0226.

There are lots of ways to become debt free and we can help you find yours, whether you're looking to find out how to get an IVA or have a question about debt management, we're here to help.

Advice is confidential, free and impartial.

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Debt Help Advice

At Debt Support Trust, our charity volunteers and advisors get to know you before trying to help with debt problems. We understand your situation so as our debt advice will work long term to help you get out of debt and stay debt free.

That's why one solution doesn't suit everybody. What's right for one person, may not be best for another. But don't worry, we always provide every available debt solution to help you make an informed decision about your debts.

Help Me With Low Debt Problems

Small debts, which are described as debts under £10,000, can often be more difficult to clear for some people than larger debts. But with our charities support, we'll be able to help you with your debt worries.

There are a range of debt solutions which can help for people with low debt, such as a debt management plan. The debt management solution helps repay all of the unsecured debt (credit cards, personal loans etc) but just over a longer period of time.

For help with your debts, please telephone Debt Support Trust or complete a debt analyser form.

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How Do You Get Out Of Debt?

One solution to debt is an IVA? An Individual Voluntary Arrangement is a debt solution for people who have debt above £12,000 and are unable to meet their contractual payments as they fall due.

The IVA will:

  1. Help you become debt free, usually within 5 years
  2. Allow you to pay one monthly payment to one company
  3. Freeze interest and charges
  4. Help you become debt free

The full benefits and the negatives of an IVA are on our IVA page.

How Do I Get An IVA?

There are various stages to be accepted for an Individual Voluntary Arrangement. The first stage is to understand if the solution is right for you. The IVA can have positive and negative attributes and should never be entered without professional debt advice being sought. If you would like to check if an IVA would help with your debt problem, please call 0800 085 0226.

As Debt Support Trust we are a registered debt advice charity providing professional support to help you with debt problems, so we must give you every possible debt solution. You can then decide which debt solution will be best for you.

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Charity Debt Support Advice

Call Debt Support Trust today to help you with your debt problem on 0800 085 0226. We are open from 8am to 7pm Monday to Friday.

Thursday, November 01, 2012
Debt Support Trust
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Debt Loan for Bad Credit

We're experts at dealing with bad credit and free advice on debt loans and money advice as a registered money advice charity in the UK.

debt-loan-bad-credit1

When debts are mounting and money problems seem to be caving in, what options are there? A debt loan can be one way to deal with debt, but if you have a bad credit what are your options? Who will lend you money and at what interest rate?

Take a deep breath and don't panic. It's important to take things step by step.

 

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Option 1: Get a loan to deal with bad debt?

To help get a loan for bad credit follow our step by step plan.

Step 1: If you have applied for credit before but been rejected, do you definitely know it's because of your credit rating? If not, then get your 30 day free credit report trial from Creditexpert.com. This will tell you what your credit score is. Make sure everything on your credit report is accurate as errors could be stopping you getting a loan.

Step 2: Next, ask yourself what you need the loan for and how much you need. If you need the loan because you are in debt, perhaps option 2 would be better, instead of a debt loan for bad credit. If you're debt free and you're rebuilding your credit history then step 3 could help.

Step 3: Visit a comparison website for available loans. Most comparison websites will have a range of credit available for different people. People with an excellent credit file will be offered credit at the lowest interest rate as they are the least risky.

Remember, credit at a high interest rate will mean it will be more costly to repay the loan. However, continual borrowing of credit and repaying the debt will improve your credit file over time.

analyseyourdebt

Option 2: Get Debt Help to Deal With Bad Credit?

If you are in debt and would like a loan to deal with your debt, then this advice and support can be provided by Debt Support Trust. It can often be difficult to obtain credit with a bad credit file but we can explain your options.

You should check your credit file as it could hold information which is inaccurate and in turn is making obtaining a loan more difficult than it needs to be.

Debt Consolidation Loans

A popular solution to debt, especially for people struggling with interest rates and charges, was a debt consolidation loan. These debt consolidation loans would help somebody who was paying multiple rates of interest, pay one affordable monthly payment towards their debt every month. This meant their monthly contractual payments to debt were more affordable.

However, obtaining a credit loan when the debt problems are severe can be difficult. So we advise seeking professional debt help from a registered charity. A charity will explain if a debt consolidation loan could be possible or whether a debt solution would be required.

Debt Solutions

There are a number of debt solutions which could help a person become debt free and these should always be considered for people in debt and struggling financially. Some of the debt solutions will:

  1. Freeze interest and charges
  2. Allow for one monthly payment to one company
  3. Stop creditors from calling and demanding payment
  4. Help a person to be debt free after a certain amount of time

These benefits are similar to those benefits of a debt consolidation loan, in terms of helping a person make affordable payments and become debt free. However, with debt solutions there is no debt loan involved.

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Charity Debt Loan Advice

At Debt Support Trust we are a registered debt advice charity. We give a wide range of debt and money advice. Most importantly, we want to help people become debt free and live a life without money worries.

The first step to become debt free for anybody is to call and ask about the debt solutions available. A friendly Debt Support Trust volunteer will help take down the necessary information to get the process started.

To call Debt Support Trust please telephone 0800 085 0226.

Wednesday, October 31, 2012
Debt Support Trust
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Reduce My Debt

Every month when you open your credit statements and see the outstanding bill increase do you ask yourself, "How do I reduce my debt"? If so, you're not alone. Most people we speak to want to reduce their debt or even write off a percentage.

A debt solution can help you to become debt free and with a charity like Debt Support Trust we are focussed on helping you reduce your debt.

We want to see everybody become debt free. It all starts with a call to Debt Support Trust on 0800 085 0226.

How Do I Reduce My Debt?

The first stage in trying to deal with debt is to seek professional help. We all turn to different people so it may be that you speak to a friend, family member or come directly to a charity like Debt Support Trust.

Our advice is free and impartial. Anything you tell us is confidential and we will not share your details with anybody else.

Before we can help you to reduce your level of debt we need to understand how severe the debt problem is. We ask a couple questions about your situation, who you owe money to and whether you can afford to repay anything towards your debt.

This question and answer stage helps our qualified volunteers determine which solutions would be best for you. Once we know a little about your personal and financial situation we explain all of the available debt solutions and what the benefits and negatives are.

Debt is never as scary as it seems when you have a qualified advisor on your side helping you.

Debt Solutions to Reduce Debt

There are various debt solutions which will help you to reduce your debt, or stop the debt from growing. We look at each of these debt solutions and explain how they can help lower your debt level or reduce your interest.

Debt Management: The debt management plan requires you to repay all of your debt but in this solution your creditors may freeze or reduce your interest and charges to help you repay the money you borrowed.

IVA: Within an IVA you will be asked to make a monthly payment towards your debt, usually for 5 years. At the end of the solution all interest, charges and outstanding debt will be written off.

Trust Deed: In Scotland, a Trust Deed will help a person write off the debt they cannot afford at the end of the solution, along with the interest and charges.

Bankruptcy: You may be asked to pay into your bankruptcy for three years, however, at the end of the solution all interest, charges and outstanding debt is cleared and you are debt free.

Each of these debt solutions will have negative points too, which should be considered fully before deciding on the appropriate solution. For instance, your credit rating will be affected for 6 years.

Getting Debt Help to Become Debt Free

Debt charities can help advise you impartially on the money solutions which will enable you to resolve your debt problem. Some of these could freeze your interest and charges or even see a proportion of your debt written off at the end of the solution.

Usually you will be able to choose from a couple of debt solutions and the choice will be entirely your decision.

If you want telephone debt advice from a registered charity you can telephone Debt Support Trust for free on 0800 085 0226.

Tuesday, October 23, 2012
Debt Support Trust
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Debt Advisory Centre

Debt advice over a telephone can often be easier for people looking to take that first step to deal with their money worries. So, at Debt Support Trust, our registered charity provides free money and debt advice over the telephone.

Our trained debt advisory centre help people across the UK and our advice is 100% confidential. The telephone lines are open from 8am to 7pm. There's no need to make an appointment, simply pick up the telephone, dial 0800 085 0226 and we'll do the rest.

Debt Advisory Centre for Money Problems

There are lots of ways to get debt advice if you have money problems, but we believe a free debt advice service, such as one offered by a charity, is the most impartial and independent route to get debt help.

There are other options, such as telephoning a debt advisory centre advertising on TV, radio or on the internet, but these companies may charge you a fee for their help.

Debt Support Trust exists to help people worried about debt and who find their lives are impacted by the effects of debt. Often the problems associated with debt start small, such as being a little stressed about money but this can lead to other problems with family and friends.

Our debt advice line can be accessed immediately. You do not have to take the help or advice offered by Debt Support Trust, the decision is entirely yours.  Speak to somebody about your problem is a step in the right direction to becoming debt free - you don't even have to give us your name if you don't want to.

Best Debt Advisory Help

Seeking debt help from a debt advisory centre can take 30 minutes and give you the guidance and support you need to become debt free.

Once we understand the debt solutions which you are applicable for our telephone advisor will explain the pros and cons of each debt solution, specifically for your situation.  You are then empowered to make an informed decision about your debt solution.

When you have decided which solution you wish to proceed with you can either find your own company to help or speak to one of the companies we recommend based on previous users experiences.

Debt Advisory Line

Contact our debt advisory line today for free and impartial debt help from a registered money advice charity.

Our helpline charity is open from 8am until 7pm Monday to Friday. To contact our debt advisory centre call 0800 085 0226 or complete a debt analyser form and we'll call you back.

Monday, October 22, 2012
Debt Support Trust
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Free Debt Management Advice

Debt management plans can have you debt free by making one monthly payment to one company each month and attempting to get your interest and charges frozen.

Debt Support Trust is a free debt advice charity helping people with their debt problems via the telephone and internet.

A debt management plan is a unique debt solution which is suitable for some people with debt which they can't afford to repay. The debt management plan will enable you to repay your debt over a longer than originally agreed period and you could even have your interest and charges frozen.

Best Debt Management Plan

There are different debt management plans offered by lots of companies but we believe the best debt management plan is the free debt management. The level of service is excellent and it will have you debt free quicker than other options.

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If a debt management plan is suitable for you then you'll be asked to make a monthly payment to one company. The company offering a debt management plan will attempt to get your interest and charges frozen so that when you make your monthly payments you're paying off your debt.

To check if a debt management plan is right for you take our debt analyser test for a quick answer.

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Or, you can call us on 0800 085 0226 for free, confidential advice.

Different Debt Management Plan Options

There are different debt management plan options: free or for-profit. As a charity we always recommend the free debt management options as they will have you debt free quicker than the for profit debt management plans.

A for profit debt management plan would charge you a fee for managing the debt solution, whereas there are free options which don't charge you. Instead, the free debt management company would get their money from your creditors for managing your debt solution.

If you would like to check whether you qualify for a debt management plan then complete our debt analyser today for quick advice.

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Quick Facts about Debt Management

There are positives and negatives to the debt management solution which you should consider before entering the solution but a qualified debt advisor within Debt Support Trust can help you understand these.

Some facts on debt management are below to help you:

  • A debt management plan lasts until all of the debt is repaid
  • Your house or other assets are no considered
  • If you have debt over £5,000 you could enter a debt management plan
  • A debt management plan would affect your credit file for 6 years

Debt Advice Debt Management

Debt management is just one available solution to debt. There are others like a Trust Deed, bankruptcy, IVA and debt arrangement scheme. There may even be a couple of debt solutions available too.

At Debt Support Trust we give you all your options so you can make an informed decision.

Call us today for free advice on 0800 085 0226.

Thursday, October 18, 2012
Debt Support Trust
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