One Advice | Bankruptcy, IVA & Debt News

Often, when coming across a range of debt solutions, you may come across the benefit that they can all consolidate your debt. But what does debt consolidation really mean and what is the difference between consolidation loan, debt management and IVA?

People often believe that debt consolidation can only come in the form of a loan and only a debt consolidation loan can be used to consolidate your debts into one lower monthly payment. But this is not always the case, as ‘debt consolidation’ also refers to any type of consolidation which allows you to combine your monthly unsecured debt repayments into one lower payment. This should make it easier for you to manage your debts as you only have to make one payment per month instead of separate payments to different creditors.

So, when deciding upon a debt solution it is important that you fully understand the difference between a debt consolidation loan, debt management plan and an IVA. The following gives you a brief overview of these differences, but for personalised debt advice about which of these solutions is right for you, call One Advice now on 0800 048 1752.

Debt Consolidation Loan – A Debt Consolidation Loan is a new loan which is taken out in order to pay off existing debts.  Many people opt for a debt consolidation loan as they find it makes managing their unsecured debts much simpler and easier to manage.
A key advantage of a Debt Consolidation Loan is that you can often benefit from a reduced monthly payments but it is likely that you will be repaying these debts over a longer period of time. It is important to note that a Debt Consolidation Loan is often secured against your home, so never agree to a loan if you feel as though you will fall behind on your debt repayments as you could lose your home to repossession. Always seek expert advice about a Debt Consolidation Loan before you agree.

Remember that not every debt consolidation option means that you take out a new loan:

Debt Management Plan – A Debt Management Plan is an informal, flexible debt solution which allows you to make lower payments towards your unsecured debts. Your monthly payment will be based on only what is affordable to you after your income and expenditure has been taken into account. Therefore you will still be able to keep a  standard of living and make a lower monthly payment to us which we will distribute between your creditors.
It is worth noting that a debt management plan offers no amount of debt write off so you  will continue to make payments to the plan  until your debts are paid off in full.

Individual Voluntary Arrangement (IVA) – An IVA is a legally binding agreement between you and your creditors, where you agree to make a single reduced payment to your unsecured creditors over a typical 60 month period, after which any unpaid debt will be written off.
Like a Debt Management Plan, you will be making payments which are affordable to you after your outgoings have been considered.

This is just an overview of the difference between consolidation loan, debt management and IVA, and we would always recommend that you seek professional information before deciding upon any type of debt solution.

It is possible to repay debt with a debt management plan and become debt free. A debt management plan is designed for individuals who are struggling to manage multiple debts and find themselves falling behind on repayments. A debt management plan can combine all of your existing debts into one lower monthly payment, this should mean you can take control of your finances much more easily as you only have to make a single monthly payment to us, which we will distribute between your creditors.

There are a number of potential benefits when you repay debt with a Debt Management Plan, including:

• It should be easier for you to repay one single reduced payment to your debt management plan rather than managing multiple debts.
• You don’t have to worry about your unsecured creditors as we will deal with them on your behalf.
• We may be able to freeze interest and charges on the debt although this cannot be guaranteed.

You will have to repay the full amount of debt with a debt management plan as it offers you no percentage of debt write off, therefore it could take you longer to repay the debts as you are making a lower repayment at a rate that is affordable to you.

If you have debts over £12,000, you may consider repaying debt with an IVA. An IVA is similar to a debt management plan where you make a lower monthly payment but it offers some additional benefits. It is a legally binding contract between you and your unsecured creditors which means, when agreed, they cannot revert back on the arrangement. It also allows a certain amount of debt write off so you only repay the debt that is affordable to you over a 60 month period.

There are a number of avenues which you might want to explore when repaying debt. We would always advise that you seek professional debt advice for help with this, contact One Advice now on 0800 048 1752.

A Debt Management Plan is a flexible, informal arrangement between you and your unsecured creditors where you agree to make a single reduced monthly payment towards your debts based on what is affordable to you after your income and other outgoings have been taken into account.

Your eligibility for a Debt Management Plan is dependant on a number of different circumstances, and the level of debt needed for a Debt Management Plan can differ. If you have unsecured debt levels over £12,000 you may find that an IVA is more suitable for your circumstances.

A Debt Management Plan is designed to make your debts more affordable to you on a monthly basis. We will negotiate with your creditors so you make the payments which are affordable to you. Some may agree to freeze interest or charges although this can not be guaranteed.

It is worth nothing that a Debt Management Plan offers you know no level of debt relief and you will have to repay all your debts in full. An IVA, on the other hand, allows you to only repay the debt that is affordable over a 60 month period; on completion of the IVA any unpaid debt will be written off.

The only way you can really see how you qualify for a Debt Management Plan is to get expert debt advice, and One Advice can help you with just that. Our specialist debt advisors will go through your individual circumstances and help you to find a debt solution which is perfect for you, for more information call now on 0800 048 1752.

Understanding the different debt solutions from a debt management company can be confusing. There can be a number of debt solutions on offer but it is essential that you fully understand the benefits which each debt solution can give you and what the advantages there are over alternate debt solutions.

The different debt solutions are specifically designed to help people with different kinds of debt problems, and the debt solutions you may come across include a Debt Management Plan, IVA, Debt Consolidation Loan or Trust Deed.

The advantage of there being a number of debt solutions means that it is likely that there is one to suit you, the downside can sometimes be knowing which one is the right one! This is where a Debt Management Company can help, they will take an holistic overview of your finances, take into account your incomings, outgoings and level of debt. From this information they will help you decide which debt solution can sort out your debt problems as quickly as possible.

One Advice can offer you a selection of different debt solutions but we would never over-complicate the situation for you. We will make the process as simple as possible  and, if you take one of our Debt Management Plans or IVAs, we will deal with your creditors on your behalf so you don’t have to worry about a thing!

If you wish to find out more about the different debt solutions from a debt management company, take the One Advice 1 Minute Debt Test to see what debt solutions options you have…

Bankruptcy is an extreme debt solution and should only ever be seen as a debt solution in the last resort, there are a number of alternative debt solutions which you may want to consider. The reason why bankruptcy is not a quick-fix to your debt is because the short-term and long-term consequences of declaring bankruptcy can be serious, as they can affect your ability to keep your home or earn a living through your own business.

But don’t if you feel as though bankruptcy is daunting possibility don’t panic, as there could be be possible alternate avenues which allow you to avoid bankruptcy and become debt free:

1: Understand your finances. Perhaps one of the reasons why you are struggling with your debts is because you do not have a firm grip on your finances. Therefore ensure that you find the time to review your current finances. Make sure that you take into consideration both your incomings and outgoings.

Understand what your priority debts are, which are those payments that you must not miss at any cost or else you could face severe consequences, and these include items such as your mortgage/rent or household utility bills.

Work out where your excess spending is going, such as take aways or early-morning coffee habit, and cut out these non-essential outgoings and put any extra cash towards repaying your debts.

2: Debt Management Plan as a Debt Solution. Bankruptcy is not the only debt solution available and, in many cases, you will find that you can avoid bankruptcy with an alternate debt solution. We can devise a debt management plan for you where you make a smaller monthly payment to us and we will make the payments on your behalf to your unsecured creditors. We will take into account all of your essential outgoings, such as household builds and food shopping, and ensure that you can afford these and still make a reduced payment to your creditors from the remaining money.

3: IVA as a Debt solution. An Individual Voluntary Arrangements (IVA) is a bankruptcy alternative which you may wish to consider if you are a homeowner with over £12,000 worth of unsecured debt. An IVA is a formal arrangement between you and your creditors where you agree to make a reduced monthly payment to your debt for a typical period of 60 months. Unlike bankruptcy, your home should be protected during the IVA although you may have to release some of the equity.

Hopefully you should now realise that bankruptcy is not the only solution when you are struggling with unsecured debt, and One Advice are here to help. We have helped many of our clients avoid bankruptcy with one of our debt solutions. Fill out the Quick Enquiry form on the right of this article for an immediate call back.

Being debt free is the ultimate goal for many people and it doesn’t have to be an impossible dream. With the right debt solution you can make your debts more affordable to you on a monthly basis, meaning that you can keep to the agreed repayment and begin to pay your debts off and become debt free.

There are a number of debt solutions to get you debt free and the one which is right for you will be dependant on your personal situation. Each of our debt solutions is designed to help you manage your debts appropriately and we will make this process as simple as possible.

The best way that we can discover which of our debt solutions to get you debt free is the most appropriate, it is essential that you get expert debt advice. We have a team of leading debt advisors who will take details of your income, expenditure and help you decide which of our debt solutions is the perfect one to put you on the track to becoming debt free.

Debt solutions offered by One Advice include:

Debt Management Plans: One of the most popular debt solutions to get you debt free is a debt management plan. This informal agreement between you and your unsecured creditors which allows you to repay what is affordable to you on a monthly basis.
Your monthly payment will be based on what is affordable to you after all your expenses have been taken into account. This means that you will be left with enough money to pay for your essential expenditure, such as mortgage/rent, utility bills, food shopping etc. Repaying your debt at a slower rate means it will take you longer to become debt free and your creditors may not agree to freeze your interest and charges.

Individual Voluntary Arrangement (IVA): An IVA is a debt solution to get you debt free in as little as 60 months. It is an agreement between you and your unsecured creditors which is legally binding and you commit to repaying as much of the unsecured debt that is affordable over the IVA period. Once you have successfully completed the IVA the rest of your debt will be written off.
This type of debt solution is only suitable for those with debts of at least £12,000 and you must always be sure that you get professional IVA advice to ensure it is the right debt solution for you.

Trust Deeds: An IVA is only available to those who live in England, Wales and Northern Ireland. If you are a resident of Scotland a Trust Deed is your IVA alternative. Like an IVA you only pay the debt that is affordable to you and unaffordable debt will be written off, but the typical Trust Deed term is 36 months.

These are just some of the solutions to get you debt free. For personalised debt advice please speak to One Advice directly or take the 1 Minute Debt Test to see your debt solution options.

Knowing if debt management is the right debt solution for you can be tricky. The right debt solution for you can be dependant on a number of different factors, such as your income, outgoings and level of unsecured debt. If you are looking to reduce your monthly outgoings and simplify your finances, a debt management plan could be the debt solution to help you do just that.

A debt management plan allows you to consolidate multiple unsecured debts into justa single monthly payment. This can make managing your debts much easier as you no longer have to worry about making several payments to different creditors throughout the month.

With a debt management plan you will benefit from reducing the amount of debt that you need to repay on a monthly basis. However, you will have to repay these debts over a longer period of time and some creditors will not freeze additional interest and charges on your debt.

Your level of debts is not the important factor when deciding if debt management is the right solution for your debts, it is more about your ability to repay your outstanding debts at a level that is affordable to you. Typically if your debts are over £12,000 you may find that your circumstances make you more suitable for an IVA. Like debts management, an IVA allows you to make one affordable monthly payment but offers you the additional advantage of having an element of debt write-off and becoming debt free in a typical period of 60 months.

For more information about whether debts management is right for you, fill in the Quick Enquiry Form to the right of this page.

When you are looking at your debt solutions, you may wish to understand the difference between IVA and Debt Management. Each of these are potential a debt solution for those struggling with repayments but it is important that you are aware of the difference between IVA and Debt Management, and which of these two options would be a better debt solution for you:

Debt level: An IVA is typically only suitable for larger levels of unsecured debts of £12,000 or more. Debt Management is more suitable for those with smaller debt levels.

Type of agreement: An IVA is a legally binding agreement between you and your creditors and, once the IVA has been agreed, you are both bound by it. Failure to keep to the terms of an IVA may mean that your creditors can declare you bankrupt.

On the other hand, Debt Management is a much more informal agreement and the terms of your plan can be more flexible if your circumstances change.

Length of agreement: An IVA is typically a 60 month repayment plan where you pay what is affordable over the agreed period of time and any unpaid debt will be written off on completion of the agreement. Debt Management offers no debt write-off and you must repay your debts in full.

Debt Write Off: As mentioned above, an IVA will write off the debt that is unaffordable to you on completion of the agreement. This is the main difference between IVA and Debt Management, as with Debt Management all of your debt will be repaid to your creditors.

Debt Management Plans and IVAs are not the only debt solutions available, and the right one for you will be dependant on your situation. For further information from one of our expert debt advisors, call now on 0800 048 1752.

If you can’t keep up with your unsecured debt repayments and you feel as though you are struggling to repay your debt, then professional debt management advice may help you to retake control of your financial situation.

A professional debt management plan is an informal agreement between you and your unsecured creditors. A professional debt management company, such as One Advice, will liaise with your creditors on your behalf. We will negotiate lower monthly payments with your unsecured creditors.

We would calculate the amount that you can afford to repay to your professional debt management plan based on your income and expenditure. As we tailor the monthly payments to you, you should find that your debt repayments become affordable although you will be repaying that debt over a longer period of time.

During process of getting you set up with a professional debt management plan, you creditors may also agree to freeze or reduce interest and charges. This cannot be guaranteed but we will try our best to make this happen for you.

Debt management involves talking to your unsecured creditors, explaining to them that you can’t keep up with your repayments and asking them to accept lower monthly payments, meaning you could repay your debts in a way you can actually afford. Some creditors may agree to accept reduced monthly payments for a certain amount of time. They

So, if a debt management plan sounds like it could help you deal with your current  financial difficulties, you need to decide whether it is time to ask for professional debt management advice. Along with our service, One Advice will also take care of any creditor letters and phone calls.

We will build an ongoing relationship with yourself by performing a periodic review of your financial situation, as your circumstances could begin to suit another financial plan better or you may be able to increase your creditor repayments.

Please contact one of our professional debt management advisors on 0800 048 1752 for further advice about our debt management plans.

A Debt Management Plan is specially designed for those who are unable to meet their unsecured debt repayments. A debt management plan allows you to make a reduced monthly repayment to your unsecured lenders or creditors. The monthly repayment will be tailored to your unique circumstances, dependant on the amount you can afford after your income and expenditure have been taken into consideration.

There are number of key debt management benefits which you may want to consider when deciding upon a debt solution. These include:

1. One reduced monthly payment to make: The two main key debt management benefits is that a) you lower the amount you need to repay to your debt, and b) your unsecured debts are all consolidated into this lower monthly payment. This means that you don’t have to worry about making payments to multiple creditors at different times in the month; all your unsecured creditors can be paid with your debt management plan.

2. We will deal with your creditors: One of the most stressful things about falling behind with your debt repayments is the constant flow of calls and letters from your creditors demanding payments which, realistically, you cannot afford. A debt management plan removes this worry as we will deal with your creditors on your behalf.

3: Better budget management: A debt management plan allows to to handle your budget much more effectively. You will know exactly how much you will have to pay towards your debt management plan and the amount which is due. This allows you to effectively budget your spend and, as the debt management plan has been tailored to your personal financial circumstances, it will be affordable.

Whether of not you can take advantage of the key debt management benefits is dependant on your individual circumstances. Call One Advice now for free debt management advice from one of our personal debt management consultants – 0800 048 1752.

If you are looking for a debt management solution you may have heard about debt management plans and wonder how they can help you to deal with your debt. For personalised advice about our debt management solutions, please contact One Advice now on 0800 048 1752.

A Debt Management Plan is an informal debt management solution which allows you to make a reduced payments to your unsecured creditors. The payment that you need to make will be determined by your own set of unique financial circumstances, such as the amount of income that you have, living costs and the amount of debt thqt you have. From this information a debt management compay, such as One Advice, can determine how much you can afford to make to your debt management solution.

There are a number of advantages with a debt management plan. For example, you get to make one single payment which will cover all of your unsecured debt. This should make it easier for you to manage your finances and budget accordingly. As this type of debt management solution is not legally binding between you and your unsecured creditors, should you wish to pay off more of your debt and become debt free quicker – you can!

As with any type of debt management solution, it makes sense that you also understand any disadvantages which may occur. With a debt mangement plan you will be making a reduced payment to your debt, therefore it will take you longer to repay the debt in full. But remember that your debt will be more affordable to you on a monthly basis.

There are a number of debt management solutions which are designed to make your debts more affordable to you, such as an IVA or debt consolidation loan. The right debt management solution is dependant on your financial situation so always seek expert debt advice before deciding upon a debt solution.

Those struggling with unmanageable amounts of debt and cannot afford to meet their monthly debt repayments may be looking to find a suitable debt solution to help ease this burden.

Debt management can reduce the debt repayments that you need to make on a monthly basis, which is why many people who struggle with their unsecured debt repayments consider debt management plans as an option. This type of plan involves a debt management company, such as One Advice,  negotiating with your unsecured creditors, and get them to agree to you making lower monthly repayments at a rate that you can afford.

Debt Management Plans are tailored to your own personal circumstances, therefore the monthly debt repayment that you make should be at a level that you can after all your essential expenses,  such as utility bills, mortgage or rent payments, have been taken into consideration.

Debt management can help to reduce debt repayments as you only have to make a single payment to your plan which will cover all of your unsecured debt. Therefore there are no multiple debt repayments that you need to make; just one debt repayment to the debt management plan. From here the money will be distributed between your creditors as agreed.

Although debt management will reduce debt repayments, you will still have to repay the debt in full as there is no element of debt relief. Some of your creditors may agree to freeze or reduce interest and charges, but this cannot be guaranteed so you should be aware that you may have to pay off your debt for longer.

An advantage of a debt management plan over other forms of debt solutions is that a debt management plan allows you to benefit from smaller monthly payments without the need for any further borrowing. This means that it could be a suitable way for someone looking to lower their monthly debt repayments if they have been rejected for a debt consolidation loan.

If you are looking for a form of debt reduction that can reduce the amount of debt that you need to repay, there are alternate debt solutions. For example, with an IVA (Individual Voluntary Arrangement) you only make affordable payments to your debt for a typical period of 60 months and, on successful completion of the IVA, any unpaid debt will be written off. It is essential that you seek professional IVA advice as not everyone is eligible for an IVA.

There are a number of reasons why, and why not, you may be debt management suitable. The best way to see if your financial circumstances mean that you are suitable for debt management is to seek professional advice about your debt. This should help you to understand an alternate debt solution which you could benefit from as well accessing if you are debt management suitable.

If you are debt management suitable, it make sense that you understand the nature of this debt management solution and how it can help you with your debts and, ultimately, allow you to become debt free. The  following offers you the basics of a debt management plan…

A debt management plan is an informal agreement between you and your unsecured creditors. A debt management plan allows you to reorganise how your debts will be repaid to your creditors. It will allow you to make the repayment at a level that you can afford after all essential living costs, such as food, utility bills and mortgage payment, have been accounted for.

A debt management plan is best for those who are struggling to meet even their minimum unsecured debt repayments after other living expenses have been accounted for. Unsecured debts includes debts such as credit cards, personal loans, store cards and overdrafts, all of which can be included in your debt management plan. (more…)