From time to time we help people throughout the UK who have entered a debt solution but it hasn't been successful in clearing the debts and resolving the money problems. This can happen for a number of different reasons including a change in circumstances, payments weren't being made, creditors changed the plan, it wasn't the correct debt solution or the payments weren't affordable.
Whatever the reason, if you still owe money to your creditors then you may need debt advice to resolve any money worries.
Debt Support Trust can provide debt advice even if you've previously been in a debt solution which wasn't successful. You can call our friendly advice team on 0800 085 0226 and speak to a trained money adviser for free.
Debt Solution Cancelled or Failed
One of the most consistent reasons debt solutions fail is because the solution itself wasn't suitable. After speaking to a debt advice company you may have been advised to enter a debt solution which wasn't appropriate for your personal and financial circumstances. This can mean your payments are too high/ low and the debt solution isn't meeting your needs - to once again become debt free.
When you contact Debt Support Trust we'll re-assess your circumstances, looking at your income, expenditure, assets and liabilities. We'll then discuss with you all the available options and explain the pros and cons to each debt solution. It may be that the debt solution you entered previously was correct, however an unexpected change made the debt solution unsuccessful.
Our role at the charity is to empower you with information about all of the appropriate debt solutions and enable you to make an informed decision on which option is best for you. We aim to answer all calls quickly and provide immediate advice.
Failed Debt Management Plans
If you've previously entered a debt management plan which hasn't been successful then you can enter another debt management plan, if it's still a suitable debt solution.
Some debt management firms charge a fee from your monthly payments, typically between 10-40% of your monthly payments. At Debt Support Trust we recommend free debt management plans where 100% of the money you pay each month goes directly to your debt. Consequently you'll be able to repay your debt faster.
If creditors refused to freeze interest and charges - which meant the debt was growing as opposed to reducing - then we could take this into account when advising on your next debt solution.
Debt management plans can help you freeze interest and charges and pay one affordable monthly payment towards the debts, until all of the money you owe is repaid. If the debt solution will last too long, we'll often consider other debt solutions.
Failed IVA or Trust Deed
If you've previously entered an IVA or Trust Deed (Scotland only) which was unsuccessful then we would reassess your financial and personal circumstances and provide advice based on the information.
Typically IVAs and Trust Deeds fail because the payments haven't been maintained, but this can happen for various reasons. If you've lost income and the payments become unaffordable then it could mean that your trustee discharges you from the debt solution.
After your trustee discharges you the debt will be your responsibility to manage once again and you may find creditors and debt collectors recommence action to cover the debt. If you've not been discharged from your IVA or Trust Deed and need advice you can call our friendly advisers for advice on 0800 085 0226.
We'll assess your options and provide holistic advice on the suitable debt solutions for you. It may be that bankruptcy is the most appropriate option, however prior to entering any debt solution we'll ensure you're informed on all the options so you can decide which route is best for you.
Starting a New Debt Solution
The objective of becoming debt free hasn't changed, however if your first attempt at a debt solution hasn't worked, don't be disheartened. There are various reasons a debt solution can fail and the only objective is it ensure you're receiving the necessary support to deal with problematic debts.
Debt Support Trust advisers are on hand to support you with money worries. We can offer practical advice, in confidence and discuss options which can solve difficult debt dilemmas.
If you would like free debt advice from Debt Support Trust, please call 0800 085 0226.