Got over £30,000 of debt?

Steps to clearing personal debts of over £30,000

Money Advice Direct is an established debt advice service advising people how to get debt free (subject to terms and conditions). The debt advice service provided by our trained advice team is confidential and sympathetic at all times. The debt advice team fully understands the pressures of being in debt and the stress it can cause people. Money Advice Direct has systems in place to handle every debt situation effectively and efficiently, causing minimum stress.

Money Advice Direct advice unit state the service has given advice on record levels of mortgage and credit card debt cases. These statistics are causing concern that people could be heading further into debt. The number of people seeking advice from The UK Insolvency Helpline on debts of over £30,000 pounds has surged by a third in the past year.

What steps can you take to avoid getting into debt?

More than a quarter of people in the UK in debt owe over £30,000. The following procedures are way to deal with serious debt problems over £30,000 pounds.

• IVA – Do you have unsecured debts of over £30,000? Are you in full time employment and able to make a contribution towards your debts? If so, an IVA might be the solution you’ve been looking for. An Individual Voluntary Arrangement is a government scheme introduced in 1986 as a way to avoid bankruptcy. An Individual Voluntary Arrangement, or IVA, allows a debtor to avoid bankruptcy by coming to an agreement with creditors to pay off a percentage of his or her debts over a given period. The main advantage of an IVA is that it meeans that the debtor avoids the stigma and the severe penalties of bankruptcy. An IVA is particularly attractive for people whose careers could be put at risk by bankruptcy, such as lawyers and financial practitioners, an IVA is particularly attractive. To apply for an IVA please click HERE
• Bankruptcy - If you have debt problems of £750 or even £30,000, you may be thinking about the possibility of bankruptcy. It's important to understand what bankruptcy is, and what alternatives exist. Bankruptcy isn't permanent, so you may choose it as a way of clearing your debts and making a fresh start. Bankruptcy is a legal status that usually lasts for a year and can be a way of clearing debts you can't pay. When you're bankrupt, your non-essential assets (property and possessions) and excess income are used to pay off your creditors (those you owe money to). At the end of the bankruptcy period, most debts are 'discharged' (cancelled).
• Debt Management - Debt management plans are ideal for those with unsecured debts ranging from £1,000 to £30,000. It may be that your debts are a lot larger, in which case we would consider an IVA first and if that is not suitable, for whatever reason, then consider Debt management or other solution depending on your unique personal circumstances. Debt Management Plans are informal agreements and you would make a single monthly payment to us. To apply for an Debt Management Plan please click HERE
• Protected Trust Deed - The number of people declaring themselves bankrupt in Scotland is rising every year. If you have debts of £30,000 pounds or more you can consider a trust deed to clear personal debt. Under a Protected Trust Deed, you repay your debt over a specified period of time, based on what you can afford. Once the specified period is over, any remaining debt is written off. To apply for a Protected Trust Deed please click HERE
• Debt Consolidation Loan - If you are sure you want to consolidate your £30,000 of debts into one payment, you should shop around for a competitive rate on the High Street and get a normal unsecured, personal loan. Debt consolidation loan companies offer a tempting "quick-fix" solution to debt - you take out one loan to cover all your existing repayments.  Having someone else take the effort away from dealing with all your creditors may sound like a dream, but Money Advice Direct debt advice team advise people to steer clear. This is because the interest rates charged on these loans are normally much higher than you can get on the High Street. They often come with payment protection insurance with unfair terms, which may not cover you if you are made redundant or fall ill.

Are already in debt? Please follow our advice.

People get into debt for many reasons. It often has nothing to do with recklessness but can be because of life-changing events such as a job loss, divorce, separation or illness. So how can we avoid the pitfalls?

With the economic situation worsening, bills rising and house prices falling, many people are having to borrow even more to stay financially afloat.

If you have got into debt, the best thing you can do for the sake of your wallet - and your health - is to confront the issue head on, now. Here are some tips to improve your situation:-

Don't bury your head in the sand - If missed or minimum payments are part of your way of dealing with debt or if you're paying off one card using another, then you could be on the slippery slope of indebtedness debt and you need to seek some impartial debt advice now, before it gets out of hand. This advice is the same whether you owe £3,000 or £30,000.

Budget - Before you can do anything about reducing what you owe, you need to know your incomings and outgoings. To do this, you must carry out a personal budget. Write down the cost of your monthly mortgage, loan and credit card repayments along with regular bills and any other regular expenses, such as insurance and pension payments. Then work out the rest of your household spending (food, going out etc) using our calculator. Then add all your expenditure together to show how much you spend each month. You will now have a clear idea of your disposable income.

Cut up your credit and store cards – The average credit card debt problem is the UK is approx £30,000 pounds. Credit cards and store cards are expensive ways to borrow.  The main problem is the interest rates they charge. They are far too high, of course, but they are also almost impossible to figure out. And not just for the financially illiterate, for everyone. The obvious way to compare credit cards is to look at the annual rate of interest they charge (APR). If you need extra money, explore the loan options offered by your banks, building society or mortgage provider. It will generally cost you less but interest payments on credit and store cards.

Try and lower your utility / household bills - It seems that everything costs more these days, from petrol to supermarket shopping. We can't escape the rising prices. Utility bills are becoming outrageously high, some callers to Money Advice Direct complained of their bills doubling or even tripling in price. People in the UK are advised to shop around to lower the cost of household heating, water or telephone bills.

There is always a solution to your problem. You are not the only person in debt. The UK Insolvency Helpline act on your behalf with your creditors; you will no longer deal directly with them yourself again. The UK Insolvency Helpline can tailor a repayment plan from as little as 100 pounds per month. Whatever your circumstances we can help even if you owe £30,000. The debt advice team can provide advice on include services such as IVA, Bankruptcy Advice, Remortgage and Debt Consolidation. For more information call 0800 074 6918 or apply online.

Personal Debt Advice Menu

• Got over £15,000 of debt?
• Got over £20,000 of debt?
• Got over £30,000 of debt?

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