Debt Help & Advice
Being in debt can have a big impact on your life, as well as the lives of your family, friends, and loved ones. It can be stressful and scary, and every year, it causes thousands of people to suffer from anxiety or depression. But it doesn’t have to be this way.
Although it’s not always easy to take that first step and seek advice, we understand that debt can happen to anyone for a variety of reasons. Our debt advisers have handled every type and level of debt. We’re here to listen, understand, and help you deal with personal debts.
Why choose Creditfix?
- Write off unsecured debts over £6,000
- Stop interest and charges soaring
- Reduced payments from £110 per month
How do I get rid of debt ASAP?
If you’re struggling with debt – whether it’s energy bills or credit card debt – you’re probably looking for a way to improve your financial situation as quickly and as efficiently as possible.
The good news is, it’s possible to solve your debt problems no matter how serious your situation seems. However, it may take some time before you can successfully pay your debts in full and your financial situation returns to normal.
If you’ve done your research on the various kinds of debt help available, you’ve already taken the first step in your debt action plan. The next step is to seek professional debt advice.
Once you’ve reached out, a professional debt adviser will review your situation and offer you advice based on your circumstances. They will then guide you towards the debt solutions that suit you best. Thankfully, we can help with that.
Debt help and advice - what we offer
All of our advice is free and confidential; we offer help with a variety of debt issues, from bailiffs to budgeting, and can find you a formal solution to help you manage your debts. You can find out more about our solutions and fees by following the various links below.
Individual Voluntary Arrangement (IVA) (England, Wales, and Northern Ireland)
With an IVA, we work with the companies you owe money to and agree on a single, affordable monthly repayment. Our advisers will look into your situation to work out what you can comfortably afford to pay back so you should always be able to make your repayments alongside any other living expenses you’re currently paying.
Unlike some debt solutions that last as long as it takes to repay your total debt, such as Debt Management Plans (DMPs), IVAs normally last five years. Once five years have passed, any unsecured debts left in the IVA will be written off and you’ll be free to move on with your life.
Trust Deed (Scotland)
Similar to an IVA in England, Wales, and Northern Ireland, a Trust Deed allows people living in Scotland with more than £5,000 of unsecured debts to repay what they owe in one payment.
Once the payment term ends, which usually happens after four years, the remaining debt is written off.
Debt Management Plan (England, Wales, and Northern Ireland)
A Debt Management Plan (DMP) is what’s known as an informal debt solution. Under this scheme, you will come to an agreement with your creditors to lower your monthly payments towards your debts.
The agreement will be negotiated with the help of an Insolvency Practitioner (IP), but because it’s an informal solution, you won’t be given legal protection from creditors and extra fees could be added.
Debt Arrangement Scheme (Scotland)
Similar to a DMP, the Debt Arrangement Scheme (DAS) is a popular way to deal with debt problems in Scotland. A DAS allows you to make a single monthly payment into a debt payment programme and freezes interest and charges while you repay your debts.
The agreement is managed by an approved money adviser and it typically takes around six and a half years for an individual to clear their debts.
How we helped Michael
"Professional staff - they were understanding and non-judgmental. Fantastic, quick service too. Would recommend to anyone!"
Michael, Sunderland
What information do I need to provide when requesting debt help and advice?
So that we can find the best debt solution for you as quickly as possible, it helps to know as much information about your income, expenditure, and details of who you owe money to.
Before reaching out for debt help, spend some time gathering as many details of your financial situation as you can. Having this information to hand will help us fully gauge your situation and speed up the process of finding the right debt solution for you.
This includes proof of your identity and address, details of your income (including wage slips and benefits), and how much you spend on household costs (e.g. housing, bills, and groceries).
However, if you don’t know the full details of all your debts, don’t worry – we can help you locate this information and do a soft credit search to help you find out.
How can I find details of my debts?
There are various things you can do to find details of your debts. For the debts that you know about, check your most recent bank statements to find out the balances and reference numbers. If you don’t have these to hand, you can contact companies directly and ask them what the outstanding balances are.
If you aren’t sure who your creditors are, however, it might be a good idea to get a copy of your statutory credit report from all the main credit reference agencies in the UK (Experian, Equifax, TransUnion). Private companies will usually charge you for this but it could be as little as £2 for a paper copy or even free as part of a free trial.
Remember, because each credit reference agency collects information from different sources, your credit score can differ slightly depending on where you look. Most credit reports also don’t show information from the last four to six weeks or include certain debts (e.g. council tax arrears, unpaid income tax, benefits overpayments, or money you owe to friends, family, or tradespeople).
Companies who offer this service include:
What if I’m self-employed and need debt help?
If you’re self-employed, we can still assess your situation and help you find a solution.
IVAs, for example, are ideal for self-employed people, as they allow you to deal with your debt and continue to run your business with minimum disruption.
We aim to fit our services around your needs – whatever they may be – so if you do run your own business, we will discuss all available options and tailor a solution to suit those circumstances.
Can I get debt advice if I'm on benefits?
It’s possible to enter into an IVA if you’re on benefits, but you will need to have a certain amount of money left over every month after your outgoings to make your repayments. You can read our handy guide to debt and benefits here.
It’s also important to check that you’re getting all the benefits you’re entitled to. Being up to date with your entitlement will help to make sure that you’re not losing out on income, and may give you more money to afford your essential living costs while repaying your debts.
If you’re unsure if you’re receiving your maximum benefit entitlement, try using the GOV.UK benefits calculator to find out here.
Do I have to pay for debt advice?
While most debt management companies charge a fee for access to formal debt solutions, you shouldn’t have to pay for simple debt advice. Below are some of the most common ways to access debt advice.
Debt charity (i.e. Citizens Advice/Money Advice Service)
A debt advice charity or debt advice foundation is a not-for-profit organisation that’s set up to help people deal with debt and improve their financial situation.
There are several debt charities that operate Monday to Friday and offer free advice and guidance on getting to grips with your problem debt.
Examples of debt charities in the UK include Money Helper, National Debtline, and StepChange. They may also be able to offer you free access to formal debt solutions.
Debt management company (i.e. Creditfix/Carrington Dean)
At Creditfix and our sister company servicing Scotland, Carrington Dean, we specialise in formal debt solutions. There are fees for our services, which come from the monthly payments you make to your arrangement. If you choose to set up an arrangement with us, every discussion you have with an adviser will be in the strictest confidence.
You could also decide to pursue an alternative, less formal solution. We may not be able to set this up for you, but we can point you in the right direction, and we will never charge you just for advice on how you can improve your financial circumstances.
Does a debt solution affect your credit rating?
In short, yes – using a debt relief programme will most likely harm your credit score. How much of a knock your credit score takes and how long the damage lasts, however, depends entirely on which debt solution you choose and whether you complete it successfully.
The damage a debt solution does to your credit rating should only be temporary. Details of any debt repayment plan will stay on your credit file for six years.
During that time, you may find it difficult to access new lines of credit or open certain bank accounts. Once those six years have passed, details of any debt solution will be wiped from your credit file.
As long as you have maintained your monthly payments and stuck to the terms and conditions of your agreement, you will be free from the debts included in your arrangement and will be ready to begin rebuilding your credit rating.
I need free debt advice now. What do I do?
Struggling with debt is never easy, and you might not know where to go for confidential debt advice. That’s where we come in. As the UK’s biggest IVA provider, we understand debt and the reasons behind it.
If you’re currently dealing with a debt problem and being chased for payments, give one of our advisers a call on 0800 0431 431 for free debt help. If you don’t want to wait, you can fill in this form above so we can give you a call back.
Alternatively, contact UK Debt Expert – the debt advice arm of the Creditfix Group – for free advice tailored to your situation. Whether you’re a new or existing customer, we will review all aspects of your income and expenditure to ensure we find the right option to suit you.
Where can I get more advice on Debt Help & Advice and other debt solutions?
To discuss your options and get the support you need to deal with your debt today, contact us now on 0800 0431 431 or click the button to get started