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Email: help@debtwave.org.uk

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What solutions are available?

Debt Wave was setup to help people struggling with debts to find the right solution so that they can work towards a future free from unsecured debts.

Available solutions are Debt Management Plans, Individual Voluntary Arrangements (IVAs), Protected Trust Deeds, Debt Arrangement Schemes and Bankruptcy.

To help us determine which solution is right for you, one of our debt advisors will complete an income and expenditure assessment which will take into consideration your personal circumstances so that the solution can be tailored to meet your specific needs.

What is a Debt Management Plan?

A Debt Management Plan is an informal agreement between you and your lenders. The Plan is arranged by an FCA Authorised and Regulated debt solutions provider and repayments are based on what you can afford. A DMP enables you to consolidate all your unsecured debts into an affordable repayment plan - so you have only one payment to make each month instead of juggling several payments to different lenders.

The debt management company looking after your plan will manage all future communications with your lenders and will request that interest and charges are frozen.

What is an Individual Voluntary Arrangement (IVA)?

An Individual Voluntary Arrangement (IVA) is a legally binding agreement between you and your lenders. The Arrangement will normally last 5 years and during this period interest and charges will be frozen and lenders will no longer be able to contact you. Repayments will be based on what you can realistically afford and any debts that still exist at the end of the IVA term that you cannot afford to repay will be written off.

What is a Protected Trust Deed (PTD)?

A Protected Trust Deed (PTD) is a debt solution that is available to people living in Scotland. It is a legally binding agreement between you and your lenders. The Deed will normally last 4 years and during this period interest and charges will be frozen and lenders will no longer be able to contact you. Repayments will be based on what you can realistically afford and any debts that still exist at the end of the PTD term that you cannot afford to repay will be written off.

What is a Debt Arrangement Scheme (DAS)?

A Debt Arrangement Scheme (DAS) is a debt repayment solution that is available to people living in Scotland. It allows you to consolidate unsecured debts into one affordable repayment plan. No further interest and charges will be added to your debts and lenders are no longer allowed to contact you.

What is Bankruptcy?

Bankruptcy is a solution which is available to people who cannot afford to repay their debts. A lender can petition for a person's bankruptcy, or an individual can choose to go bankrupt. Bankruptcy can help people to become free from debt in 12 months.

How much do I have to pay each month?

For debt solutions such as Debt Management Plans, IVAs, Protected Trust Deeds and Debt Repayment Schemes, repayments are based on what you can realistically afford after all of your other household expenses such as your rent / mortgage, bills, food and travel etc have been taken into consideration.

A full income and expenditure review will be carried out with you to ensure you find the most suitable solution for you.

Will lenders accept a repayment plan?

While lenders do not have to accept a Debt Management Plan or Debt Arrangement Scheme proposal, most lenders will be happy to see that you are making efforts to repay your debts and are more likely to accept a reduced offer of payment.

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.

To go Bankrupt, you much have debts from £750 that you cannot afford to repay.

What debts are included and excluded from a debt solution?

Types of debt included in a debt repayment plan are:

  • Personal loans
  • Payday loans
  • Store cards
  • Credit cards
  • Catalogue accounts
  • Bank overdrafts

In some circumstances..

  • Rent arrears (from previous properties or current housing association property)
  • Mortgage arrears
  • Council Tax Arrears from previous properties
  • Council Tax Arrears from previous years in your current property

Types of debt excluded from a debt repayment plan are:

  • Ongoing Mortgage repayments
  • Social funds and crisis loans
  • Hire purchase loans (e.g. car loans)
  • Utility bills
  • Student loans (Taken out after 1997)
  • Child maintenance
  • TV licence

Will my credit rating be affected?

If you already have a history of missed or late repayments, then your credit rating may already be affected.

However your credit rating will be affected if you enter into a plan in the medium to long term as you will not be repaying your debts at the rate you originally agreed with your lenders.

It is also worth noting that if you have been issued a Default Notice at any point of being in a debt repayment plan; this will remain on your credit record for six years from the date the Notice was issued.