Choose the right debt solution for you
For many people in debt, they think the only way out of it is to file for Bankruptcy – but that’s not always the case.
In fact, many people can control their debts with proven solutions that enable them to repay their creditors at a rate they can afford and eventually clear their debts!
Finding the best solution for you depends entirely on your personal situation. If you would like to talk through the options available to you, please call us for a free initial consultation on 0800 096 1331.
Debt Management Plan (DMP)
A Debt Management Plan, also called a DMP, is a debt solution that works by consolidating your unsecured debts into one manageable monthly payment. DMPs are available to people with debts of £2,000 or more and are tailored to the specific budget of the person applying for the plan.
- Affordable monthly repayments
- Clear debts on successful completion
- Of 84% of debts managed we freeze interest and charges.
- We handle creditor letters and phone calls
Individual Voluntary Arrangement (IVA)
An Individual Voluntary Arrangement, also called an IVA, is a legally binding agreement between you and your creditors – the companies you owe money to.
An IVA enables you to repay debts at a rate you can afford over an agreed period of time – normally five years. Interest and charges will be frozen and any unsecured debts included in the IVA that you cannot afford to repay, will be written off at the end of the term. An IVA is available to those with £15,000 of debt or more and is subject to creditor agreement, which is not always guaranteed.
- Reduced monthly payments
- Interest and charges frozen
- Unsecured debts written off at the end of the term
- Become free of debts included in the IVA usually within 60 months
Debt consolidation
Consolidating debts is another form of debt management. If you have debts over £2,000, you may find a professionally managed Debt Management Plan the most appropriate solution for you. Other solutions include credit card consolidation and loan consolidation, however these can be risky solutions that could increase your debts rather than reduce them.
Debt Relief Order (DRO)
A Debt Relief Order, also called a DRO, is an alternative to Bankruptcy for those with little assets or disposable income. Baines & Ernst provide the DRO service for free; all you pay is a fee of £90 which is paid directly to the Insolvency Service.
- Alternative to Bankruptcy
- Clear unsecured debts
- No monthly charges – just a one-off fee of £90
Bankruptcy
Bankruptcy is a type of debt solution that enables people to become debt free after a period of time.
Bankruptcy is a serious matter and should be considered as a last resort due to the repercussions associated to going bankrupt as assets including your home, business and possessions could be used to repay your creditors.
- Protection from creditors taking further court action
- Clear debts
- Peace of mind
If you would like to talk about the options available to you, please call us for a free initial consultation on 0800 096 1331
*£603 is the average saving per month based on a sample of 18,500 Baines & Ernst customers.
Baines and Ernst Ltd