How To Get Debt Advice – All You Need to Know, FAQs & More
For free and impartial money advice and guidance, visit MoneyHelper, to help you make the most of your money.
If you feel you are unable to understand how to deal with your unwanted debt problems, it might be time you consider getting professional debt advice.
Although MoneyNerd doesn’t offer debt advice ourselves, I can help you in your search.
Read this article carefully to understand how you could apply for debt advice. I have included all the necessary information you need about who you could contact for debt advice as well.
Who do I contact for debt advice?
You could get help from debt advisors. They will be able to help you understand your problems and help by providing you with debt solutions.
Moreover, you could contact free online debt services. They will ask you some debt questions and then provide guidance.
Furthermore, you could contact a debt charity. You could not only get advice but they could also help you budget your monthly finances.
How long does it take for debts to be written off?
In case you live in England, Wales, or Northern Ireland, the estimated time it could take you is six years. However, if you live in Scotland, you could be able to pay off your debts within 5 years. This time begins since the first date you made your payment.
It is important to understand that this applies to almost all types of debts. Such as:
- Credit card
- Store cards
- Personal loans
- Electric arrears
- Gas arrears
- Council tax arrears
- Benefit overpayment
- Payday loans
- Rent arrears
How does debt advice work in Scotland?
Getting debt advice in Scotland is not as difficult as you think.
The process begins with you contacting a debt advisor. You will be asked a number of questions related to your debt and financial situation. Your advisor could ask you for some personal documents, which he will later evaluate.
After a thorough analysis your advisor will guide you about a number of things. This could include: budgeting, debt solutions, monthly payments and much more.
Once you are satisfied with the terms and agreement, your advisor will note them down. The terms of your agreement will be sent to your creditors.
From then, you just have to continue to make monthly payments, your advisor could become your trustee. This means you do not have to worry about contacting your lenders.
Is it possible to get debt help from the government?
Yes, you would be glad to know that you could get debt help from the government.
You could apply for an Individual Voluntary Arrangement:
An Individual Voluntary Arrangement (IVA) is a part of a government scheme that helps individuals with their debt problems. Moreover, they could help you prevent bankruptcy and to get some of your debts written off.
How will I know if I should apply for debt advice?
In case you are under a lot of unwanted debt and are unable to pay them off, you should apply for debt counselling.
Moreover, if you are unable to understand which debt advice is the best for you, professional help could clear your confusion.
If you have missed payments or are unable to contribute towards your monthly payments, you might want to consider getting debt advice.
Furthermore, if your creditors are forcing you to make payments, you might want to consider getting debt advice. Otherwise, your creditor could force you into bankruptcy.
If you want to make reduced monthly payments, your creditors could help you find a way. They might even be able to convince your creditors to give you a debt relief.
How will a debt advisor help?
Debt advisors are also referred to as debt counsellors, money advisors, and financial advisors. They work with individuals who have trouble paying off their unwanted debts.
This means, a debt advisor could help with a number of things including:
- They could help you deal with your urgent debts
- Provide budgeting solutions
- Give free debt advice
- Help you understand which debt solution is the best for you
- Formulate personalised debt solution for you
- Evaluate your financial situation and help you understand how much monthly payments you should make
Frequently Asked Questions (FAQs)
Is it possible to get debt advice for free?
Yes, you could be able to get debt advice for free. You could contact a money advice service to help you out with your unwanted debt problems.
Which debts should be paid off first?
There is no restriction to which debt should be paid off first. However, you are generally advised to pay off your bigger loans. This includes the debts with the highest amount of interest and charges.
This is mainly because it will become easier for you to pay off your remaining debts. Moreover, if you are lucky, your remaining debts could even be written off.
Debt advice could be beneficial if you choose the right service.
Read this article carefully in order to be well informed about your advisors. Remember to ask a lot of questions so that all your confusion is clarified before you get into a debt solution.