Debt help for people managing money worries
There are several trusted and free organisations in the UK who are willing to help you clear personal debts. One of the UK’s main debt advice agencies, The UK Insolvency Helpline is strengthening its services in preparation for a debt-ridden period ahead.
Many families are feeling the pinch as a result of high fuel and food prices, and the impact of the credit crunch on mortgage lending. But when people are facing money worries they often don’t know where to turn. The UK Insolvency Helpline services make it much easier for people to get access to information, debt help and debt advice
The UK Insolvency Helpline is determined to do more to create an environment where people get personal finance education and information from the start of their lives to the end; helping them with money problems and supporting them at key points in their lives, for getting access to debt solutions such as Individual Voluntary Arrangements (IVA), Debt Management, Protected Trust Deeds, Bankruptcy and Budgeting advice. Some of these are discussed below:-
IVA advice to those with debts over £15,000 – The Individual Voluntary Arrangement (IVA) is a legally binding contract which writes off the debt that the person cannot afford to pay. It is not the right solution for all and the application criteria are very strict. But it can mean stability is introduced into the debtor’s life and the creditor will receive (in many cases) more than they will do in bankruptcy. There is still a stigma attached to bankruptcy and many people do not want to choose that route. The number of people in Bristol taking out IVAs is up 45% followed a general rise borrowing in the last five years. People in the 30 to 40 age group took out the most IVAs while the number was growing fastest among 20 to 30-year-olds. The majority of young people entering IVAs were manual and unskilled workers with a worryingly increasing amount being from middle class backgrounds.
Debt Management Advice for those with personal debts- A Debt Management Plan is an informal process of negotiating with your creditors for the freezing or reduction of interest. The extension of repayment terms or the writing off of part of your debt. The growth in debt management plans for residents of Bristol has been fuelled by excessive consumer spending from people who have ignored rising interest rates.
Bankruptcy help for those in debt – Bankruptcy is the final debt relief option and will result in personal assets being seized. It can restrict future employability and
should only be considered as a last resort The social policy team in Bristol predict a record number of personal bankruptcy cases this year meaning people living in Bristol are entering formal bankruptcy proceedings at a rate of several a day.
The UK Insolvency Helpline is a national organisation set up to provide free support to help people with serious debt problems. The debt advice team has a particular skill in avoiding individuals or households going bankrupt. To contact an advisor call 0800 074 6918. Alternatively complete an online enquiry form and an advisor will call you back at the time that you specify.