27/10/2020
“If you live in the UK and owe £5000 or more, depending on your circumstances you may qualify for a formal debt solution which could write off up to 85% of your unsecured debt. This solution can include most unsecured debts, council tax, water, loans, credit cards, catalogues, benefit over payments, payday loans, door step loans or store cards.
Comment below or message us to speak to one of our debt advice team!
Type start below
Main Advantages/Benefits of this Solution:
- One affordable fixed monthly repayment over a set time
- At the successful end of the term, any outstanding balances on included debts will be written off.
- No upfront fees; fees are incorporated into your monthly payments.
- Interest and charges on included debts will be frozen
- Legal action from included creditors is stopped as long as agreed repayments are met
Main Disadvantages/Risks:
- Your creditors may not approve, which may stop the arrangement going ahead
- Your credit file will be negatively affected
- If your arrangement fails, there is a risk of bankruptcy
- There will be restrictions on your expenditure
- You will be added to a public register
- Homeowners may need to remortgage to contribute towards debts. This may be at a higher interest rate than previous; if this isn't possible, your arrangement may instead be extended for 12 months.
We will advise you on your available options based on your own circumstances - if you do not meet the required criteria or if another available solution is more suitable for your needs, we will make this clear. The amount written off will depend on your own financial circumstances and cases must be approved by the majority (by value) of your creditors. To qualify for this solution you must have at least £5,000 of qualifying unsecured debt, owed to 2 or more creditors.
