How Do I Turn Debt Around?
People battle with their money worries for year and often it takes between 2 and 10 years of accruing debts, avoiding telephone calls, deciding against opening the mail and hiding the problem from friends and family before you feel ready to turn your debt problem around and seek debt help.
When you decide to pick up the telephone to turn debt around and deal with your debt problem you want somebody who understands what you’re going through, isn’t going to judge you but instead will provide expert and qualified debt advice.
How Can You Help Me Turn Debt Around?
Debt Support Trust is a registered debt advice charity and specialises in helping people turn their lives, and debt, around. Our sympathetic volunteers listen to your personal and financial situation and gather the necessary information for a qualified debt advisor to provide you with debt advice. You are under no obligation to follow this advice.
Some of the debt solutions available to turn your debt around include Debt Management Plans, Protected Trust Deeds and IVAs.
Debt Management to Turn Debt Around
A debt management plan is an informal debt solution which can help you turn your debt problem around. This is achieved by sending a proposal to your creditors to make an affordable payment each month towards your debt.
The criteria to turn your debt problem around via a debt management plan is;
– Minimum debt of £5,000
– Minimum of 2 different creditors
– Must be able to pay £100 a month towards your debt
If you live in Scotland you may wish to consider a Debt Arrangement Scheme as this also provides legal protection for your house.
Protected Trust Deed to Turn Debt Around
A Protected Trust Deed is a formal proposal sent to your creditors which offers a percentage of their money back, usually over a three year period. You would make an affordable monthly payment towards your debt and would repay what you could over 3 years along with any equity within a house or other asset. Only people in Scotland can turn their debt around with a Protected Trust Deed, with Glasgow, Edinburgh and Aberdeen the most popular cities for a Protected Trust Deed.
To be applicable for a Protected Trust Deed to turn debt around you should;
– Repay at least 10% of your debt after Trust Deed fees
– Owe at least £10,000
– Owe money to at least 2 different companies
IVA to Turn Debt Around
An IVA can help people in England, Wales and Northern Ireland turn debt around. The IVA is a popular debt solution for people who cannot afford to repay their debts when they fall due. Roughly 40,000 people enter an IVA each year in England, Wales and Northern Ireland to turn their debt problems around.
The IVA enables you to repay a percentage of your debt and if you complete the solution the remaining amount will be cleared at the end of the solution. Both the IVA and Protected Trust Deed will have a detrimental effect on your credit file.
To be applicable for an IVA and turn your debt around you should;
– Owe at least £12,500
– Be able to repay around 25% of your debt after fees
– Owe money to at least 2 different creditors.
If you need debt help to turn debt around you can contact Debt Support Trust on 0800 085 0226 or complete our debt analyser.