Debt Problems

Overcoming debt and alleviating stress

For many people, debt has unfortunately become part of everyday life.

With the current state of the economy, redundancies, rises in inflation, the cost of living and fuel prices going up, it’s easy to see why so many people have fallen into debt.

The anxiety involved in managing finances can be overwhelming, so it’s not uncommon that people feel like the best way to cope is to ignore creditor letters and phone calls – which is the worst thing you can do. Instead, we recommend that you face your debt problems head on – because the sooner you do, the sooner you can escape a life of debt.

At Baines & Ernst, we regularly speak to people who were once in a position to keep up repayments and then found themselves in a situation where they were struggling.

If this is happening to you, you must remember that there are ways in which you can deal with debt, and most importantly, clear debt.

At Baines & Ernst we offer sound advice, effective services and outstanding support to help you through the debt management process.

Beating debt

There are no quick-fixes to getting out of debt, but there are options available that can help make the process easier and less stressful.

When we face tough financial circumstances, it can be difficult to find a way out, but with careful planning and an honest and open approach with your creditors, you could see huge improvements in your situation.

At Baines & Ernst, we could negotiate directly with your creditors or refer your case onto licensed Insolvency Practitioners who will act on your behalf. We specialise in a number of solutions, including:

• Debt Management Plan: Allows you to repay debts at a rate you can afford. Of 84% of debts managed we freeze interest and charges.
• Individual Voluntary Arrangement: Interest rates and charges are frozen and any remaining unsecured debts included in the IVA that still exist at the end of the term (normally 5 years†), will be written off.
• Debt Relief Order: This is an alternative to Bankruptcy for those with little assets or disposable income. This solution can help you clear unsecured debts and we provide this service for free; all you have to pay is a fee of £90 which is paid directly to the Insolvency Service.
• Bankruptcy: Although restrictions apply, you can clear debts by going bankrupt. However, this type of solution should be considered as a last resort due to the repercussions as assets including your home, business and possessions could be used to repay your creditors.

Finding the best solution for you depends on your individual circumstances, current income and outgoings. You can compare debt solutions on our website, or speak to us directly for a free initial consultation on 0800 096 1331.

†With an Individual Voluntary Arrangement your credit rating will be affected for up to 72 months. Failure to adhere to an IVA may result in bankruptcy. Homeowners may be required to re-mortgage after 4 years