The correct debt advice, whether it’s bankruptcy, IVA or debt management is dependent on your personal and financial debt problem. The debt advice service available from Debt Support Trust may differ to other debt advice organisations.

We like to ensure you’re not rushed into a decision on your debt solution. Your advisor will caringly listen to your financial problem and give honest and transparent advice. This enables you to decide which option is right for you.

Not for Profit Debt Advice Service

Our not for profit charity advisors will review your income and expenditure to understand:

  1. Your salary from any employment (or pensions)
  2. Your benefits including working tax credits, housing benefit and child tax credits, among others
  3. What expenditure you have every month, like rent/ mortgage, food, gas/ electricity and other monthly expenses, before you pay your credit agreements.

The next stage is to understand what credit agreements are in place and which companies you owe money to. Most people we help are able to live month to month, but are overstretched when it comes to repaying their credit agreements.

This means there isn’t enough money to live and pay debts in full, but a debt advice service could help.

By using the available disposable income each month a debt solution could be applicable. The available disposable income is calculated by subtracting your expenditure from your income. The remaining amount is your disposable income.

Solution after Seeking Debt Advice

All debt advice services must use a set of budgetary guidelines to ensure food and other essential expenditure is within an appropriate range.

After reviewing the expenditure and understanding how much disposable income is available, then debt advice can be recommended. Debt advice services must also consider assets, like a house or car as equity may be required to be released in some debt solutions.

Some of the most popular options to resolve debts include:

Token payments: When you’re disposable income is very small (e.g. £20 per month) but you anticipate your financial situation improving, then you could consider a token payment each month. This is typically the best option for people who are recently unemployed but expect to gain employment again shortly.

Debt management: The debt management plan is an informal debt solution. You make one payment towards your debts each month. Typically a debt management plan would be suitable for somebody with £6,000 and who could afford £200 towards their debt each month.  There’s no guarantee interest and charges would be frozen, however if they were, the person would be debt free in 2.5 years.

IVA: A formal debt solution where interest and charges are frozen and written off at the end of the debt solution. One monthly payment is required, usually for 5 years, and any remaining debt is cleared at the end. Assets, like equity from a house or car will be considered at the end of the solution.

Trust Deed: A Protected Trust Deed offers Scottish people the chance to be debt free, in a fixed period of time. If the debt is not repaid at the end of the solution then it will be written off, along with interest and charges. Again, equity from assets will need to be taken into consideration.

Bankruptcy: A one year debt solution. There is a fee to enter bankruptcy which varies depending on the correct route. You may also have to pay money each month towards the bankruptcy for three years. At the end of the bankruptcy any debt which is not repaid is written off.

Debt Advice: The Service Provider

You have a choice over which service provider you choose to give you debt advice. Any debt solution above should come with a warning – your credit file will be impaired. This usually means a default is added and it lasts for 6 years.

If you would like help from our debt advice service team, then please call us on 0800 085 0226. This is a free call from a landline, however, if you’re phoning from a mobile please let us know and we’ll call you back to save your bill. Alternatively, you can email with your details and we’ll be glad to call you back.

Our debt test is available to offer online debt advice too.