Debt Solutions that we Aim to Provide
Given below is the detailed list of Debt solutions provided by Step Change. You can contact us at our Step Change phone number to learn more about each of them. Our professional advisors will help to identify if it is the right choice for you or not. This will be determined by learning about your financial position and the amount of debt you owe. Thus, go through the following section to learn more about our Debt solutions.
Debt Management Plan (DMP)
A Debt Management plan is the most effective way of repaying debts at an affordable rate. Moreover, we provide these services without charging any fees. Thus, we will contact the creditors on your behalf and work out a reduced repayment value to repay the debt. Accordingly, we will help you to manage your expenses and savings to make these payments on time.
Temporary Repayment Plans
A Temporary Repayment plan is helpful for those who are certain that their financial position is going to improve later. Therefore, we will draw out a plan accordingly and ask you to make a small payment to your creditors. Once received, they will not pursue you for any further payments. Accordingly, you will be provided with a certain time period to improve your financial standing. In case, it improves over time, you can start making repayments as before.
However, if your financial position is still poor, we can help you to get rid of the debt under special terms and conditions. It is important to note that these will be reflected in your credit file as well.
Individual Voluntary Arrangement (IVA)
In comparison to bankruptcy, Individual Voluntary Arrangement or IVA is a much viable choice. Here, the individual can pay a certain lump-sum or periodical repayments at reduced rates. Then, we will pool these into one unit and distribute them to the creditors accordingly. Hence, consult a professional by contacting Step Change phone number to learn if it is the right choice for you.
Administration Order
An Administration Order can be issued on your behalf for a reduced repayment amount towards your creditors. It is issued by the County court who can order creditors to take reduced repayment amounts after analyzing your financial position. Generally, the reduced amount is decided after factoring your essential living costs and priority debts.
Debt Relief Order (DRO)
A Debt Relief Order or DRO is another alternative option to insolvency or bankruptcy. Here, the individual is allowed to pay a reduced monthly amount for a fixed period of time. After the period has ended, the rest of the debt is written off. As a result, creditors cannot demand more than what was instructed by the order.
Equity Release
Generally, Equity Release is granted for senior citizens or individuals who are retired. Hence, it is a viable option for those who do not have a steady source of income. With the help of this, any capital asset like a House is released in terms of its monetary value. Thereafter, the individual can receive a lump sum or in monthly payments to help pay their debts. In some cases, individuals can use it for other purposes as well.
Debt Arrangement Scheme (DAS)
Incidentally, a Debt Arrangement Scheme or a Debt Payment Program is only available for the citizens of Scotland. It allows an individual to make affordable monthly repayments towards the money they owe. Moreover, the interest rates are frozen as well. As a result, it helps to bring down the monthly repayments to a certain degree. After the period is over, all your debts will be considered to be paid in full.
Debt Consolidation
Debt Consolidation is a complicated process to repay a debt. It is the process of taking one loan to pay off another. The reason why it is so complicated is that it is heavily monitored and comes with certain risks. Moreover, there is a limit to the amount of debt consolidation that can be taken out for debt repayment. In some cases, it may not be approved unless it is done through a Debt Counselling agency. Therefore, it is absolutely necessary to contact the Step Change phone number to help you with the process.
Minimal Asset Process (MAP)
Similar to the Debt Arrangement Scheme, a Minimal Asset Process is only available in Scotland. With this debt solution, individuals can have their debt legally written off at the order of the Court. This is a viable option for those who do not have many assets and have very low income.
At Step Change, we can provide these services completely free of cost. However, you do have to pay a fee of £90 to the court. Moreover, you can only apply for a MAP through a debt consultancy agency like ours. Hence, give us a call at Step Change phone number to ascertain if it is the right choice for you or not. We will take care of the application process and all the legal proceedings on your behalf.
Mortgage Advice
Apart from various Debt Solutions, we offer great advice on mortgages as well. Thus, you can call us at our Step Change phone number to learn about the different kinds of advice. We ensure that you will be able to pay off your mortgage within the given time period efficiently. You just have to tell us the details about your mortgage and your current financial position. After that, we will help you to work out a repayment schedule according to your affordability.
Bankruptcy
Bankruptcy is the ultimate last alternative as a debt solution. After declaring bankruptcy, all the individual’s debts are written off and it is entered in the public register. Although it can provide a fresh start, it can greatly affect a user’s credibility. As a result, he will face higher interest rates if he chooses to take a loan in the future. There are other alternatives to bankruptcy as well. Hence, consult our professionals at Step Change phone number to decide the best option suited for you.
Sequestration
In Scotland, bankruptcy is known as Sequestration. There are a few ways in which it is different than the one mentioned above. Moreover, the rules for bankruptcy in Scotland are different as well. Similar to the former, the debts will be written off but your assets may be sold off too. This will be done to facilitate the repayment of such debts. Also, you can apply for Sequestration only through a Debt Counselling agency.
Therefore, you can get in touch with us through our Step Change phone number to apply for Sequestration. However, it should be done if you feel that you have no other options left. It is important to note that both bankruptcy and sequestration can adversely affect your credit score in the future.
Protected Trust Deed
Again, a Protected Trust Deed is only available to the citizens of Scotland. Here, a formal agreement is drawn where you agree to pay a reduced monthly repayment amount to your creditors. This will continue for a period of 4 years after which the remaining debt will be written off. Similar to other debt solutions, you can avail this only through a debt advice agency.
Thus, feel free to get in touch with us at our Step Change phone number to learn more about the application process. There are certain terms and conditions which need to be met before you can apply for a trust deed.
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