Reduce monthly debt repayments with debt consolidation
Feel like you’re struggling to make ends meet every month? With the cost of living spiralling, it can get harder to manage debts. So to help you get back in control, we offer debt consolidation that lets you to combine the following debts into one easier to manage monthly repayment plan…
You could consolidate…
- Credit cards
- Payday loans
- Personal loans
- Store cards
- Catalogue accounts
Is Debt Consolidation a loan?
At Baines & Ernst, we do not lend you money – instead we help you find an affordable way to get out of debt.
We could help you consolidate all your unsecured debts into one monthly repayment with a solution that’s built to suit you.
Call us on 0800 096 1331†to find out how we could help you.
Call us on 0800 096 1331†to find out how we could help you.
What debt consolidation could do for you:
- Lower monthly repayments
- Reduce direct contact from lenders
- Clear unsecured debts on successful completion
- All this without having to take out a loan!
Debt Consolidation - what you need to know
What we charge and why
At Baines & Ernst, we help people beat debt by offering the highest standard of service, expert debt advice and affordable solutions. Our fees depend on your personal circumstances, and we’re always honest and upfront about these costs. Click here to learn more about our fee structure for all of our services.
There are different rules around lender acceptance depending on the solution you enter into.
For example, lenders will be confident that proposed repayments through a Debt Management Plan are based on what you can realistically afford to pay towards your debt balances and will be more likely to proceed with a Plan.
With an IVA or a Protected Trust Deed, it’s a little different. In both instances your case will be passed to an Insolvency Practitioner for further assessment. They will then draft a repayment proposal and present this to your lenders.
For an IVA to be approved and interest and charges to be frozen, the proposal will need to be voted on and approved by lenders representing 75% of the value of your debts.
For a PTD to become protected and interest and charges to be frozen, one third or more of your lenders (by value) must agree to the proposal.
If you would like to know more about our Terms and Conditions, click here.
A debt solution such as a Debt Management Plan, IVA or Protected Trust Deed will help you deal with all your unsecured debts – such as credit cards, overdrafts, personal loans, catalogue debts and payday loans.
When assessing your financial situation, we make suitable allowances for you to be able to afford your priority bills and day-to-day living costs before we calculate how much you can afford to pay towards your unsecured debts.
With a Debt Management Plan, repayments are based on what you can afford, so the length of the Plan will depend on the level of debt you have and how much you can afford to repay each month. It is a flexible solution so if your financial situation improves in the future and you can afford to pay more, then you will reduce the time it takes to clear your debts.
A Debt Management Plan helps you to repay your debts at a rate you can afford, so it will take you longer to clear your debts. Also if lenders do not freeze interest and charges, the total amount to be repaid could increase. We’ll provide you with an estimate of the plan length as part of our financial review.
IVAs and Protected Trust Deeds are legally binding agreements and repayments are set for a specific period of time. An IVA typically lasts for 5 years and providing you have kept to the terms of the Arrangement, you will be free from all debts included in the IVA at the end of 60 months.
A Protected Trust Deed typically lasts for 4 years – and providing you have kept to the terms of the agreement, you will be free from all debts included in the Deed at the end of 48 months.
No, we do not offer loans – we provide debt consolidation services that help you to repay your unsecured debts at a rate you can afford without borrowing any more money.
If you are a Debt Management Plan customer, please do not ignore letters or calls from your lenders, please ask them to contact us instead and we will handle their questions. While we cannot guarantee that lenders will stop contacting you completely, they will normally choose to contact us once they know we are managing your debts for you.
If you are an IVA or Protected Trust Deed customer and a lender contacts you, speak to your Insolvency Practitioner straightaway. You are legally protected from lenders contacting you – so you should not receive any contact once your IVA or Protected Trust Deed has been set up.
If you have already struggled to make repayments on time or have missed them altogether, your credit rating may already be affected.
Your credit rating will be affected if you enter into a debt solution, this is because you will not be repaying your debts at the rate you originally agreed with your lenders.
If you choose to clear your debts with a Debt Management Plan your credit rating will be affected in the medium to long term. Also, if a Default Notice has been issued during the period of the Debt Management Plan, it will remain on your credit record for six years from the date the notice was issued.
If you choose to clear your debts with an IVA then your credit rating will be affected for six years from the start of your IVA. If you are a homeowner, you may be required to release equity from your home in the 4th year of the IVA to help repay lenders. Once an IVA is approved by your Lenders, it will be listed publicly on the Individual Insolvency Register. If the IVA fails, it may lead to bankruptcy.
If you choose to clear your debts with a Protected Trust Deed your credit rating will be affected for six years from the start of your Deed.
If you have a Debt Management Plan and your circumstances change, simply give us a call and we will do all we can to help you. If your circumstances change and you are dealing with your debts through an IVA or a Protected Trust Deed, you will need to contact your dedicated Insolvency Practitioner.
We provide no-obligation debt advice. If you enter a debt solution, then there is a 14 calendar day cooling off period, from when the signed and returned documentation has been received, in which you can cancel. You will receive a refund of any monies we have not already paid to your lenders on your behalf.
However, IVAs and Protected Trust Deeds are legally binding so if you do not cancel during the cooling off period, you will not be able to cancel if you simply change your mind.
A Debt Management Plan is a flexible solution and it is not legally binding so you can cancel at any time.
There are different fees for all of the services we provide, you can find a comprehensive breakdown here.
Below are some links that you may find of interest:
Our monthly pay plans are built around what you can afford to repay after bills like rent / mortgage, utilities and food have been taken into consideration.
We offer debt consolidation through a Debt Management Plan, IVA or Protected Trust Deed depending on your financial situation.
We will carry out a financial review to find out which debt solution would suit you best.
If you qualify for Debt Consolidation through an IVA or a Protected Trust Deed, interest and charges will be frozen. If you qualify for a Debt Management Plan (DMP), we will do all we can to make sure your lenders do the same – which we have been able to do in 93% of debts managed through a Debt Management Plan.
Although we cannot guarantee that lenders will stop contacting you completely, we will do all we can to reduce this contact as much as possible.
While we are setting up your Plan, we’ll let your lenders know that we are working on your behalf. This means your lenders will start communicating with us directly.
However, if lenders continue to contact you, please do not ignore their letters or calls, please ask them to contact us instead and we will handle their questions.
You don’t need to face debt problems alone ever again when you’ve got Baines & Ernst on your side.
Help and support is only ever a phone call away, so if you have a question, simply pick up the phone to get the answers and reassurance you need.