How Payplan Help To Clear Debts
At Payplan we want you to be able to look forward to a future with no debt. That's why we help thousands of people each year clear debts and start again.
You've taken your first steps by looking at the Payplan website, now let us help ease your pressure by helping you regain control of your finances. Talk to a friendly impartial Payplan adviser, and we can help you by doing what we do best: clearing debts.
Clearing Debt With A Debt Management Plan (DMP)
A good DMP can be an effective method of clearing debt, by making regular payments to your creditors at a rate you can afford until you've paid them off in full.
At Payplan we have twenty years' experience in dealing with creditors on our clients' behalf, and we always try to encourage creditors to freeze interest and other charges, which some are happy to do for as long as you maintain your regular DMP payments.
Unlike most other debt management companies, Payplan do not charge you any initial set-up fee whatsoever. Nor do we then charge you a monthly fee; instead we work closely with our clients to agree on affordable and sustainable plans that are appreciated by creditors, who then pay us a small donation for providing this service.
If you're thinking about clearing debts with a DMP, then you may find this a beneficial debt solution if you have less than around £15,000 in unsecured debt with a small number of different creditors, and you can afford to pay your creditors a reasonable amount each month.
Want to know more about how to clear debts with a DMP? Call Payplan free on 0800 280 2816 as we can advise on your situation with impartiality.
We've been helping our clients to clear debts since 1992, so we're sure we can help you in some way too.
Clearing Debt With An Individual Voluntary Arrangement (IVA)
An IVA is a legal agreement between you and your unsecured creditors aimed at helping you to avoid bankruptcy by clearing debts after affordable payments have been made into your plan for a set amount of time that is usually five years.
Following a Payplan analysis of your income and expenditure, we then negotiate with your unsecured creditors in order to agree a repayment schedule for you that is sustainable, and after accepting an IVA proposal creditors then agree to clear debts upon successful completion.
If you want help with clearing debts, then you may find that an IVA is a beneficial debt solution if you have more than £15,000 in unsecured debt with numerous different creditors, and you can afford to pay your creditors a reasonable amount each month.
Once your IVA begins, creditors freeze interest and other charges, and they are not allowed to contact you with regard to payment while you keep to your plan.
Want to know more about how to clear debts with an IVA? Call Payplan free on 0800 280 2816 as we can advise on your situation with impartiality. We've been helping our clients to clear debts since 1992, so we're sure we can help you in some way too.
Help with IVA's
Payplan provides expert, impartial & confidential advice & debt solutions that are FREE to our clients.
Clearing Debt With Bankruptcy
Bankruptcy is the most severe way of clearing debts, although it does allow you to begin again with a fresh start.
But if you have to clear debts with bankruptcy, this can have serious negative effects on your and your family's lives, not to mention your ability to obtain any kind of credit in future.
When it comes to ways of clearing debts, bankruptcy should be considered a last resort. This is because you will have to liaise closely with a representative from the Official Receiver (OR), who is then authorised to sell any significant assets you own (including your home and your car, but excluding assets that provide basic needs) in order to raise the money to clear debts that you've accrued.
This can obviously be an incredibly stressful and traumatic time, and this bankruptcy period will normally last for one year. After that, when your bankruptcy is discharged, all the debts covered by the bankruptcy proceedings are written off.
Once you're going through the bankruptcy process you'll find it very difficult to obtain credit in future. And bankruptcy can also cause you to be disqualified from holding certain positions of employment; such as Member of Parliament, Justice of the Peace, governor of a school, member of a Local Authority, or a company director.
This is obviously a hard price to pay for clearing debts, particularly when there may be other debt solutions available to you that aren't quite as severe.
If you want to know more about how to clear debts using the bankruptcy process, then you should call Payplan free on 0800 280 2816 as we can advise on your situation with impartiality. We've been helping our clients to clear debts since 1992, so we're sure we can help you in some way too.
Clearing Debt With A Debt Relief Order
When it costs around £600 in costs and fees to actually go through the bankruptcy process, some people looking towards this very serious method of clearing debts really don't have the means to go bankrupt and therefore qualify for a cheaper alternative; a Debt Relief Order (DRO).
A DRO might not cost as much as bankruptcy, but it's every bit as serious and will have similar long-term consequences as bankruptcy in that your ability to obtain credit will be severely impaired.
You will also need to meet strict qualifying criteria if you're looking to clear debts with a DRO. A full list of criteria can be found on Payplan's Debt Relief Order page, but the main criteria are; you must live in England or Wales, must not be a homeowner, have less than £15,000 of unsecured debt, less than £300-worth of assets, and less than £50 spare income per month.
If you want to know more about how to clear debts using a Debt Relief Order, then you should call Payplan free on 0800 280 2816 as we can advise on your situation with impartiality. We've been helping our clients to clear debts since 1992, so we're sure we can help you in some way too.
Clearing Debt With A Debt Consolidation Loan
Many people have heard of using a debt consolidation loan as a means of clearing debts. This debt solution involves taking out a loan, and using the lump sum to pay off other debts you've accrued in full.
This can clear debt if you have unsecured debts with high interest rates (such as payday loans and credit cards) and then take out a debt consolidation loan at a much lower interest rate that allows you to pay less each month or reduce the term that you're making your repayments.
In practice, Payplan's anecdotal evidence suggests that most people begin using their credit cards again, after taking out a debt consolidation loan. This can make this particular method of clearing debts part of a vicious circle that can lead to you being worse off rather than better off; so use a debt consolidation loan with extreme caution.
If you want to know more about how to clear debts using a debt consolidation loan, then you should call Payplan free on as we can advise on your situation with impartiality. We've been helping our clients to clear debts since 1992, so we're sure we can help you in some way too.
Your Next Step To Clearing Debts
As a next step, contact Payplan for free, sympathetic and immediate advice regarding advice on clearing debts. Telephone free on 0800 280 2816 or use our Debt Help Form, and your free debt help can begin as soon as you contact us.
Unlike so many other debt management companies, Payplan's Individual Voluntary Arrangement and Debt Management Plan debt solutions are free to our clients, which can mean lower repayments for you. With a Payplan free to client debt solution, all of your repayment goes towards paying back your debt.