Debt Consolidation & Management Solutions
Are your debts getting the better of you? At
Chase Saunders we offer a wide range of debt consolidation
solutions to suit your needs. The solutions we offer range from
debt consolidation,
debt management and
IVAs. We pride ourselves in finding the best
consolidation solution for you. Our professional advisors offer
confidential, no-obligation and impartial advice. If you would like to talk to an
advisor now, why not freephone 0800 228 9 228.
If you don’t qualify for an IVA don't panic!
Another way to consolidate your debts is
a debt management plan. A
debt management plan will help you consolidate all your unsecured debts
into one AFFORDABLE monthly payment. Under a debt management
plan we will help you:
- Make one low monthly repayment
- Stop creditor hassle
- We will deal with all your creditors
A debt management plan has helped tens of
thousands of people with re-gaining control of their finances. If you would like
more information regarding debt management,
call our help line on freephone 0800 228 9 228.
Debt Management Plans - How they work
Debt management plans may offer some much needed breathing space when your debt
problems are taking their toll on your day-to-day life.
What is a debt management plan? A debt management
plan involves negotiating reduced monthly payments with your creditors to allow
you some time to sort out your finances. Although the monthly payments will be lower
the plan will usually lead to the overall amount being paid back to be increased
and it may have an adverse affect on your credit rating.
Your creditors don’t have to agree to the plan but it shows that you’re taking control
of your debt problem and trying to do something
about it. You may find more relief by allowing an experienced debt advisor negotiate
with your creditors on your behalf, rather than doing it yourself.
Once an agreement is in place with your creditors for reduced monthly payments,
these will be collected by your debt management company and distributed amongst
them. The management fee for your plan will already be included in your monthly
fee.
There may be a period where contractual payments are not met due to the initial
fees to the debt management company. Only
unsecured credit can be included within the plan, therefore mortgage payments and
payments to secured loans can be included in the plan. Other types of credit may
also be excluded from the plan. Your debt management company will advise you details
regarding what can and can’t be included within a plan.
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If you’re looking to consolidate your debts you may have already considered a secured
or unsecured loan. We specialise in helping people with a
bad credit history, CCJs,
arrears or recently declined a loan elsewhere.
We have a team of specialists ready to answer any questions you might have regarding
a debt consolidation loan or any other debt consolidation solution.
Freephone 0800 228 9 228 for free help and advice.
Debt consolidation and its meaning
Debt consolidation is one possible debt solution that may be available to you if
you’re experiencing money problems.
What is debt consolidation?
Debt consolidation is the process of taking out one single loan to pay off all your
outstanding unsecured debts such as personal loans and credit cards.
A debt consolidation loan can be either secured
or unsecured.
Secured debt consolidation loan
This type of loan may allow you to consolidate all your existing unsecured debts,
things like credit cards and store cards, into one loan which is secured against
an asset. This asset will usually be your home and therefore is not an option available
for tenants. Failure to keep up with the repayments on your secured debt consolidation
loan could result in your home being repossessed.
Providing security for the loan in the form of your home may mean you will benefit
from a lower interest rate than you were paying on all your existing unsecured debts.
This will mean that previously unsecured debts will be secured against your property
and as the repayment period may be longer the overall repayment amount may be greater.
Think carefully before securing other debts against your home. Your home may be
repossessed if you do not keep up repayments on a mortgage or any other debt secured
on it.
Unsecured debt consolidation loan
This type of loan may also enable you to consolidate all your existing unsecured
debts into one loan which covers them all. However, this loan won’t be secured against
any of your assets. The downside to this type of loan is that because you’re offering
the lender no security for the money you’re borrowing, they will usually charge
a higher interest rate than for a secured loan.
An unsecured debt consolidation loan may still offer you a lower interest rate than
those of your store and credit cards.
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What is an IVA?
An IVA is an alternative to bankruptcy, but
can only benefit those who have over £15,000 of unsecured debt. This
consolidation solution will help you:
- Write off the debt you can't afford
- Become debt free in 60 months
- Stop creditor hassle
- Stop interest and charges
For those who qualify (take our debt test),
an IVA
can be the best consolidation solution for you.
An IVA is a legally binding agreement between
you and your creditors which allows you to make an agreed monthly repayment which
is normally fixed for 5 years. An IVA
consists of paying an affordable amount each month back to your creditors based
on an independent assessment of your total income and expenditure. IVAs are specifically
for unsecured debts such as personal loans, bank overdrafts, store cards and credit
cards. Secured loans such as vehicle H.P. agreements and mortgages are not allowed
to be included in your IVA. Your IVA
must be approved by 75% of your creditors by value in order to go ahead with the
process.
Your IVA proposal will be put to your creditors to vote on by a licensed insolvency
practitioner, usually referred to as an I.P.
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Bankruptcy can be a big step but not necessarily the wrong one,
in some cases it can the only viable option. Although there is another way, here
at Chase Saunders we have alternatives to
Bankruptcy which could help you find your most suitable debt solution.
If you want to declare yourself Bankrupt you can arrange a call back with one of
our Bankruptcy specialists.
What is bankruptcy?
Bankruptcy is the name given to the legal process that takes place when your debts
have spiralled out of control and the court takes away the responsibility from you
for repaying them. If you’re made bankrupt, you will no longer be in control of
your assets and your home may be sold off with the proceeds being distributed amongst
your creditors. You may be asked to sign an income payment agreement or be subject
to an income payment orders which typically means you will have to pay an agreed
amount from your monthly income for up to 3 years, which will go to your creditors.
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Trust deeds are basically the scottish equivalent to an IVA (Individual
Voluntary Arrangement), and is considered an alternative to bankruptcy (sequestration).
The Idea behind a trust deed is that
you will repay your debts within a specified period of time as with an
IVA (this is usually a period of five years), these monthly repayments
are based on what you can afford at the moment, this is suitable for people who
cannot afford to make the monthly repayments, but still have enough of a disposable
income to pay into a trust deed.
What is a trust deed?
A trust deed works in a similar way to an
IVA in that you have to make a formal application to your creditors through an Insolvency
Practitioner, who can then vote to accept or reject it. The
trust deed proposal put to your creditors will be for an affordable monthly
amount to be paid over 3 years as opposed to the 5 years in an IVA. If you maintain
your agreed payments for these 3 years, then any remaining debt you have will be
written off by your creditors.
The payments you make will be collected by your Insolvency Practitioner and distributed
amongst your creditors. They will take their own fees for the administration of
the trust deed from the money you
pay. Once your trust deed application has been accepted by the majority of your
creditors or more than two thirds by value, it then becomes protected and is legally
binding on you and your creditors.
Although it is considered to be an informal agreement,
trust deeds are still administered and regulated by the bankruptcy act
in Scotland (1985).
If the other criteria are met with the trust deed
itself can be registered as a Protected Trust deed.
This stops creditors from taking any form of legal action against you in attempt
to obtain money
Trust deeds are currently only availiable to people who live in Scotland.
For a trust deed there are certain
requirements:
- You must provide the trustee with details of everyone you owe money to, your creditors
- How much money you think you can pay into an arrangement each month
- And any other relevant financial information that may be important
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