Beware! We've heard of so-called "debt management companies" who say that they are Insolvency practitioners and can set-up an IVA for you - but this is not true.
Under the Insolvency Act 1986, only authorised individuals may act as Insolvency practitioners. Insolvency practitioners are authorised on the basis of education, practical training and experience. They are subject to monitoring and regulation and must hold a security bond against losses caused by their fraud or dishonesty.
You will be pleased to know that Simple Debt Solutions are licensed Insolvency practitioners.
At Simple Debt Solutions, our experienced, ethical debt advisors will help deal with all your debt queries and will give you clear, jargon-free and impartial advice to help you decide which course of action is the best for you. We’re open 9.00am until 9.00pm 7 days a week or you can fill-in our online confidential form and we’ll get back to you.
1. Don't ignore the problem It won't go away and the longer you leave it, the worse it becomes.
2. Be wary of borrowing more money Don't borrow more money to pay off your existing debts with out getting professional advice first (Our fully trained debt advice team are available 9.00am until 9.00pm 7 days a week on 0800 389 5959).
3. Don't turn your unsecured loans into a mortgage without getting debt advice first.
4. Do not pay anyone for debt advice.
Being in debt isn't something you should feel ashamed about. It can (and does) happen to everyone. In our experience (and we have plenty) most people who get into debt difficulties are just like you and me. They're normal people doing normal jobs who, as a result of unforeseen circumstances (divorce, mortgage rate rises, unemployment, illness etc) find that their finances run away from them and sooner or later, they need sensible advice and an ethical debt solution. That's where we step in to help.
Remember you are not alone with your debt problem. Our friends at Credit Action regularly put together UK debt statistics and we thought it may be helpful to share them with you.
Want to find out more about The Facts?
Being in debt is very stressful but there are always solutions available as these recent customer case studies show. Remember, your first step to becoming debt free is simple.... pick up the phone and call us NOW for impartial, ethical debt advice.
Name: Mike and Gill
Marital Status: Married, 2 children
Occupation: Sales Manager & Receptionist
Situation: Redundancy causes debt problems
Mike is 40 and married with two children aged ten and six. In 1997, Mike and his wife Gill moved from a rented one bedroom flat to a three bedroom semi-detached house, as Gill had just become pregnant with their second child. They had saved enough for a deposit but with little money set aside for furnishings they decided to take out an unsecured loan for £15,000. The payments were not a problem as Mike had a secure job as a sales manager with a good salary and Gill worked part-time as a receptionist in a dental practice. However in December 2000, Mike´s employer lost two major contracts and six months later Mike was made redundant. It wasn´t until early 2002 that Mike secured his current position as a supervisor for a large supermarket chain at a much reduced salary.
Since moving house, Mike and Gill had supplemented their income by using credit cards to help pay for family holidays, Christmas and other household expenses. However, when Mike´s salary was reduced he had to take out more credit cards to supplement his income further and help cover the monthly repayments. Finally Mike and Gill realised that they could not meet the demands of their creditors and it became clear that they needed help. Mike began phoning companies who would provide loans at very short notice although he knew that another loan was not the answer. Mike contacted us and was surprised at just how simply his financial position could be dealt with. Using the information Mike and Gill provided we prepared a proposal to creditors on their behalf. The proposal was based on affordable monthly payments. Creditors accepted the proposal and Mike and Gill´s debt problem was solved. After months of stress, Mike and Gill now feel secure for the first time in years and will soon be free of debt. They know their house is safe and that the pressure of dealing with endless letters and phone calls from creditors has been removed.
Name: Brian and Irene
Marital Status: Married, 2 older children
Occupation: Prison Officer & Part-time School worker
Situation: Over-use of credit cards and loans leads to spiralling debt problem
Brian is employed by the prison service and Irene works part time at a local school. Their children have grown up and left home. The couple have consistently maintained their mortgage and there is sizeable equity in the property. Brian and Irene have subsidised their standard of living over a number of years by using credit cards and then consolidating their debts in loans. They then began to obtain further credit, again using more credit cards on top of their existing loans. They tried to maintain their debts, which were in excess of £50,000. The financial pressure was taking its toll on both their health and marriage.
Brian and Irene were embarrassed about their debt and for a number of years buried their heads in the sand, not fully recognising the options available to them. Eventually they sought help and proposed an IVA to their creditors to release part of the equity in their home as a one-off deal. The property was re-mortgaged and their debts were discharged.
Name: Helen
Marital Status: Single
Occupation: Nurse
Situation: Excessive credit card spending leads to debt problems
Helen recently qualified as a nurse and moved out of her parent´s home to start renting a two bedroom flat with one of her friends. The flat was unfurnished and, as Helen had used her savings for her deposit, she took out an unsecured loan of £4,000 to help buy furniture and other household items. Helen found her job stressful and began socialising frequently to help relieve the stress of work. Her salary as a nurse didn´t cover her expenses and so she began obtaining various credit cards to help supplement her income. Helen soon realised that she couldn´t afford the repayments to her credit card companies and so, to reduce the monthly payments, she took out a consolidation loan of £12,000. In June 2002 Helen booked a last minute two week holiday with a group of friends. She financed this through a credit card and once again her spending began to spiral out of control.
By February 2003, Helen had taken out more credit cards and the pressure from creditors to repay just the interest was becoming a problem. Helen spoke with her credit card companies to try and reduce the repayments but they would not listen. A friend recommended Simple Debt Solutions and Helen rang to ask for free advice. From the information that Helen provided, it was clear that an IVA was the best course of action. Helen´s proposal was quickly drawn up and put to creditors. Creditors agreed the proposal and now Helen pays an affordable monthly sum by way of a direct debit from her bank. She will repay 28% of her debt.
Name: David
Marital Status: Separated, 2 children
Occupation: Police Officer
Situation: Marriage breakdown leads to debt problems
David is 32 years old and has been employed as a police constable since February 1995. He has two children, a boy and a girl aged five and eight years old. David´s marriage broke down in November 2002 and he is separated from his wife. He moved out of the family home and rented a flat close by to remain in regular contact with his children. Before the breakdown of the marriage, David had three loans and comfortably managed his finances. However, David found himself having to pay rent for the flat and maintenance to his wife to ensure the children´s wellbeing. With increased outgoings, David began to supplement his income by taking out two credit cards in addition to his existing debts. Over the following months, the strain of the failed marriage began to wear heavily on David and he found his work was suffering as a result. He had reduced his overtime, which he had relied on in the past to boost his basic pay. David´s debts were increasing due to his additional costs, interest and reduction in pay. The situation was becoming unmanageable and the stress was affecting David´s health.
Given David´s professional circumstances, he felt that to walk away from his debts was not an option. Following a recommendation from a colleague, David approached us to provide a simple solution which would suit both him and his creditors. We assisted David to provide a proposal to his creditors. Creditors accepted David´s proposal and the binding arrangement significantly reduced his outgoings to a simple monthly payment by a standing order. David will actually repay 25% of his debt and will be free of debt on conclusion of the arrangement.
Name: Simon
Marital Status: Married, 2 young children
Occupation: Technician
Situation: Redundancy causes debt problems
I was made redundant after 10 years of working for the same company. I had what I considered a small amount of debt at the time, about £5,000 or so. When I first heard I was going to be made redundant I thought that with my current salary and the length of service to the company, I could be paid a decent sum but I couldn't believe it... I got peanuts! I also thought I would get another job quite quickly but I didn´t and then my financial responsibilities really hit home. I had to borrow to meet my family´s needs - I have a wife and two young children and previously I had taken our comfortable lifestyle for granted.
The stress was ridiculous and the sense of failure overwhelmed me for some time but eventually I found new employment. Then when I took stock, and thought I was getting on I couldn´t believe how much debt I had incurred in such a short period of time. Frankly I was embarrassed. I contacted the Citizens Advice Bureau at first but they didn't give me a definitive plan. Then I looked on the internet and found Simple Debt Solutions. I couldn´t believe it. They gave me uncomplicated advice and a plan. They weren't judgmental and the process was so quick. With Simple Debt Solutions´ help I put forward an IVA to my creditors and I will repay 30% of my debt on an easy monthly repayment scheme.
Name: Sarah
Marital Status: Separated, 2 children
Occupation: Sales
Situation: Redundancy causes debt problems
When my marriage broke down I didn't know which way to turn. I had to find somewhere to live for me and the children and I just don't know how I coped. Then when I got somewhere to live and things settled down a little, I realised that I had been left with debts that I couldn't pay. I took out a loan to make my monthly repayments cheaper but looking back on this I really couldn't afford to pay any of it.
I put off sorting the problem out for ages and then my friend recommended Simple Debt Solutions. They gave me confidential advice and explained all the options so I could understand them, including bankruptcy. I didn't want to go bankrupt so I opted for an IVA. Things are so much easier now. I know what I have to pay each month. I don't have the letters and the pestering phone calls from the people I owe money to ... Simple Debt Solutions dealt with all that for me and I feel like they have taken the problem away. My deal is one affordable monthly payment for 60 months and I repay 32% of what I owe.
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