Money & Debt Advice – Get Free Debt help

Debt Advice & Support

Corporate Debt Recovery have partnered with The Debt Advice Service who are a family led business created to help people who are financially struggling. They are a friendly and non-judgmental team that genuinely care about their customers, which can be seen from their excellent rating on trust pilot.

Are you worried about…

  • Overdrafts
  • Credit Card Debts
  • Payday lenders
  • Doorstep lenders
  • Old phone or utilities contracts
  • Store card Debts
  • Catalogue Debts
  • Loans of any kind

The Debt Advice Service may be able to help, they advise on a range of Debt Solutions which include –

Debt Relief Order

A Debt Relief Order or DRO provides a way of dealing with debts you can’t afford to pay. It presents an alternative to bankruptcy, and like bankruptcy, you’ll usually be discharged after a year, at which point all debts included will be cleared.*

*The caveat with this, is that any debts you obtained through fraud will still need to be repaid once the DRO comes to an end.

Debt Management Plan

A Debt Management Plan is an informal agreement between you and your creditors. A debt management company will take a close look at your financial situation and communicate with your creditors to agree on one affordable monthly payment. This one payment is divided among your creditors and will cover all your debt.

Individual Voluntary Arrangement

An Individual Voluntary Arrangement – commonly known as an IVA – is a legally binding arrangement between you and your unsecured creditors.

You agree to make a single consolidated affordable monthly repayment, typically for a period of five years. At the end of the IVA, any remaining unsecured debts are written off.

Before diving into the details of an IVA, let’s first clarify the difference between secured and unsecured debt.

Bankruptcy

Bankruptcy is a legal process that allows individuals with unmanageable debts to seek relief. It involves applying for a court order, after which your assets are distributed and sold to repay your creditors. In most cases, bankruptcy is discharged after 12 months, resulting in the cancellation of remaining debts. However, an income payment order may require you to make payments for up to three years.

The Debt Advice Service is here to help you find out what your options are and to talk you through them in plain English.

Chat with them now to find out how they can help to start your journey to becoming debt-free.

Visit: https://thedebtadviceservice.co.uk/

Text HELP to 84915 or call them on 033 3242 3806

Email: [email protected]

Get A Free Debt Assessment

By clicking ‘SUBMIT’ you consent to receiving information regarding debt solutions via a telephone call, email, text message, and WhatsApp messages from the debt advise service, no information is ever shared with Corporate Debt Recovery Limited.

FAQs

During the Debt Relief Order (DRO) period, you cease making payments toward the debts and interest specified in the DRO. Following the 12-month period, you will no longer be obligated to pay these debts. Upon receiving DRO approval, you will not receive any further correspondence from the Insolvency Service.

Despite obtaining debt relief, you may still be obligated to fulfill your financial commitments to creditors under certain circumstances. Furthermore, your debt relief order will be recorded on your credit history for a period of six years, potentially impacting your ability to secure credit in the future.

Typically, an IVA is more suitable if you are a homeowner and can afford monthly payments. On the other hand, a DRO may be more appropriate if you have limited or no assets and are financially unable to contribute towards your debt. If you require assistance, do not hesitate to seek professional debt advice.

A Debt Management Plan (DMP) is an informal arrangement between an individual and their creditors to settle outstanding debts. Under this agreement, the individual makes a single monthly payment that is distributed among the creditors.

An IVA may be a more suitable option for individuals whose financial circumstances are unlikely to improve and who seek a debt resolution with a definitive end date. Conversely, a DMP may be a preferable choice for those with multiple debts and an anticipated improvement in their financial situation in the near future.

An IVA has a duration of five to six years, with the potential for extension in the event of missed payments. During this period, strict adherence to the terms and conditions outlined in the agreement is required, resulting in limited control over personal finances.

An Individual Voluntary Arrangement (IVA) is noted on your credit report and will impact your credit score. An IVA is a legally binding agreement between you and your creditors, allowing you to repay your debts at a manageable rate.

An IVA may adversely affect your credit score and potentially hinder your ability to secure additional credit. If you require borrowing exceeding £500, you must seek authorisation from your IP. Upon completion of the IVA, the details will remain on your credit file for a period of six years from the commencement of the arrangement.

Credit counselling is a financial service that helps individuals and families manage their debt and improve their overall financial situation. It involves working with a certified credit counsellor who provides personalised advice and guidance to create a plan for paying off debt, creating a budget, and improving credit scores.

This type of counselling aims to educate individuals on financial management and provide them with the tools and resources needed to make informed decisions about their finances. Credit counselling can also include negotiating with creditors on behalf of the client to lower interest rates or create a repayment plan. The goal of credit counselling is to help individuals become financially stable and achieve their long-term financial goals. It is an effective way for people to take control of their finances and develop healthy money management habits for a more secure financial future.

Debt counselling can have both positive and negative impacts on an individual’s credit score. The main purpose of debt counselling is to assist individuals in managing their debt and improving their financial situation. As such, it may involve creating a debt management plan that requires the individual to make regular payments towards their debts. If these payments are made on time and as agreed upon, it can have a positive effect on the individual’s credit score as it shows responsible financial behaviour.

However, if the individual fails to adhere to the debt management plan or misses payments, it can negatively impact their credit score. Additionally, enrolling in a debt counselling program may also be reflected on a credit report, which could potentially raise red flags for lenders and affect creditworthiness. It is important to carefully consider the potential impact on one’s credit score before enrolling in a debt counselling program and to diligently follow the plan to improve financial standing and maintain a good credit score. Overall, while debt counselling may initially have a slight negative effect on one’s credit score, following the program diligently can ultimately lead to an improved credit score in the long run.