What Is Debt Support In The UK: A Complete Guide

Debt Support is money advice charity which is a government registered. If you are struggling with the debt, then you can go to the debt support trust to get free advice. This organization helps people to manage their debts and their qualified debt advisors help you to get rid of the debt. 

The advisors will provide various debt advice such as bankruptcy, debt management plan, Individual Voluntary Arrangement, and many others. Hence, if you are living in the UK and struggling with debt, then make sure to go to the debt support trust. You may find various debt support organizations and you can get help from any time when you are in the debt. 

Supports that You Get from the Debt Support the UK

When you are in debt and unable to make the monthly payments, then debt support will help you to overcome this situation. The support you can get from the debt support is mentioned below: 

  • Debt Support the UK always provides relevant solutions to overcome the situation at the earliest. They will provide solutions that are specific to your needs. 
  • When you contact such organizations, they will always listen to your financial situation and try to provide helpful advice. 
  • Their qualified experts provide all of the options. If you apply these solutions properly, then you will be able to free yourself from the debt. 
  • Whenever required, you can call them and each time they will receive your call and try to free you from debt-situation. You should know that Debt support will never ask you for money in order to give free advice. 

Debt Management Plan and How it Works 

It is a third party payment system and is managed by a credit counselling agency. These types of companies mostly help people who have financial issues and are basically nonprofit organizations. 

You need to keep in mind that these types of agencies will not settle the debts and d not take any loans. Instead of that, they make arrangements with financial institutions. Thus, the interest rate can be reduced and you might not have to pay any huge sum of money monthly. 

After going to the credit counselling agency, you will meet a counsellor who will review the financial situation. After reviewing your situation if they find DMP is the best option for you, then they will negotiate with the creditors on your behalf. 

When you agree to repay the creditor through the debt management plan, then the interest rate will lower. With the help of the many DMPs, you will be able to pay your debt within 5 years. 

When the DMP starts, you won’t have to think about payments. This is so because you have to make a one-time payment to the counselling agency. At that time, you might have to pay a small monthly fee to the agency as they provide this service to you. 

Benefits of the Debt Management Plan

With the help of the debt management plan, you will be able to make payments easily and that will help you to free from the debt. The main benefits which you can get from a debt management plan are discussed below. 

  • Professional Advice 

There are many experienced professionals who will give free advice to you to get out of the debt. They will provide a financial counselling session and help you to find the best way. 

  • Make A Single Payment Monthly

When you decide to go with the DMP, then you will have to make just a single payment monthly. Thus, you will not have to juggle bills from various creditors as you only have to pay to the counselling agency once a month. 

  • Calls vary based on the situation

Sometimes, it might be possible for you to add the past-due accounts in the Debt Management Plan. At that time, the creditors and the collection agencies will not call you for the monthly payments. But you need to keep in mind that it will not stop suddenly as it might take several months. When all the procedures and paperwork worked out, then creditors will stop to call you. 

  • Debt Will be Solved Sooner 

Sometimes, you might be struggling to pay the monthly interest. After discussing it with the counsellor if they agree, then the rate of interest will be reduced. You will be able to free yourself from your debt earliest as a huge portion of the payment goes to the principal amount. 

Criteria to Qualify for the Debt Relief Orders 

Sometimes, you might have debt under £20,000. At that time, you can apply for the debt relief order and you can be qualified for it also. Make sure that you have savings over £1,000 and you have a low income i.e £50 each month after paying the household bills. 

Frequently Asked Questions 

Q. How to be free from debt in the UK? 

A. Sometimes, you might be unable to pay the debt as the amount is quite huge. Here are the solutions that you can implement on your own to free yourself from the debt at the earliest.

  • First, you have to understand your situation and plan a strict budget. 
  • Make sure to check the credit report and stop the unnecessary spending. 
  • Try to improve the credit score and before saving pay off the debt.