Debt Support Trust is a money advice charity providing telephone and internet based debt help across the UK.
Birmingham is one of England's largest cities and is one of the most popular areas seeking debt help with Debt Support Trust.
According to new research from one of the largest banks almost half the population in Birmingham is concerned about debt, with more than a third changing their spending habits since the credit crunch began.
Surveys have shown that one in ten people do not have any savings whatsoever and many people are yet to get on the savings ladder. 52% say they simply have no cash to save.
For many people living in Birmingham, debt is a way of life. People can get into debt for all sorts of reasons, one in four people now use loans or credit cards to meet basic living costs, which is a worrying statistic. If 25% of people require credit to survive it can feel like a never ending cycle where you are trapped by debt.
However, for people living in Birmingham and seeking debt help there is a couple options. Debt Support Trust can provide debt advice via our team of dedicated volunteers and advice team. We are here to help find a solution to your debt problem and explain the pros and cons to these solutions.
Debt Support Trust advises thousands of people each year about their debt problems. We listen to your debt problem, try to understand what has happened and provide you with information about the suitable debt solutions for you. For all sorts of reasons people can find themselves in a position where they cannot pay their debt. Our role is to help people in Birmingham with their debt worries without judgement. All information you provide Debt Support Trust is completely confidential. We will ask you to set a password when you contact Debt Support Trust which will keep your information secure.
Debt Support Trust wants to find a way to improve the quality of life of people struggling with debt. We believe people should repay what they can afford to their debt but that there should be a light at the end of the tunnel and a day when debt will not control a person's life.
There are various debt solutions available for people living in and around the Birmingham region. These include debt management, debt consolidation, IVA and bankruptcy.
A debt management plan is a debt solution enabling you to pay one monthly repayment which is divided amongst your creditors. You repay all of your debt at an amount you can afford and your creditors are dealt with on your behalf. The creditors will also be asked to freeze interest and charges, although this is not guaranteed. It is an informal solution which can be stopped be either party with one month's notice. The length of time the debt management plan will last for depends on how much unsecured debt you have, how much you are paying and whether interest and charges are frozen. You should note that entering this debt solution will affect your credit rating for six years.
This is a formal and legally binding arrangement between you and you creditors. You must be in a position to contribute towards your debt on a monthly basis, usually for 60 months. Once the IVA is set up your creditors will no longer be able to contact you and all further interest and charges will be stopped. You repay an affordable amount each month and as long as you comply with the IVA you will repay a percentage of your debt with the rest being cleared at the end. An IVA will require you to release your share of any equity in a house or car. Your credit rating will be affected for six years.
Bankruptcy is a formal debt solution. The fee to go bankrupt, if your debt is over £15,000, is £700. Bankruptcy lasts for 1 year however you may have to pay an Income Payment Order for 3 years. An Income Payment Order is where you make monthly contributions towards your bankruptcy. This monthly amount is set by the Official Receiver. Any assets with equity may be sold for the benefit of your creditors. Your credit rating will be affected for six years.
Before entering any solutions we strongly recommend you seek professional debt advice. You can call Debt Support Trust on 0800 085 0226 or complete our debt analyser below.
There are different ways to receive debt help in Birmingham and at Debt Support Trust we want to ensure you have all of the necessary information to make an informed decision about your debt problem.
You can receive telephone and internet based debt help in Birmingham by telephoning Debt Support Trust on 0800 085 0226.
If you would prefer face to face debt advice in Birmingham we would recommend the Citizens Advice Bureau. The charity offers excellent face to face support should this be your chosen method.