What is Debt Restructuring ?

Debt Restructuring is an informal arrangement between you and your creditors, negotiated by us on your behalf. We take details of your debts, income and outgoings. This is called an Income and Expenditure or I&E. We present this to your creditors as evidence that you are unable afford current payment levels.

You then make one affordable payment to us, which we distribute to your creditors in proportion to how much they are owed – ie the creditor with the largest debt will receive the largest share of your payment. This way, allo f your creditors receive a payment every month. Typically, the new payment may be half your existing payments (depending on your individual circumstances) but because we will then start to get interest and charges frozen, your debts may actually be paid off sooner.

Benefits of Debt Restructuring: 

• One payment.
  Less hassle, you pay us and we forward payments to your creditors.
• Lower payments.
  You only need pay what you can afford after you've paid all your essential bills such a food and rent. We will work out with you what you can afford so that you are able to make the payment every month.  
• No need for creditors to contact you.
  You can forward any letters and refer any phone calls to ourselves. We'll deal with it.
• Flexibility.
  If your circumstances change - you may lower or raise your payments accordingly.
• No more late payment charges.
  We may be able to arrange to have your payments reduced and future interest charges lowered - or even frozen.

Debt Restructuring helps real people get their finances back in order and lives back on track.
 
Debts covered by Debt Restructuring

• Unsecured loans
  Meaning, loans not secured on a property or subject to a hire purchase agreement. If you fail to make hire purchase payments, for example on a car, then the hire purchase company can repossess the goods.
• Overdrafts
• Credit Cards
• Store Cards
• Hire Purchase shortfall for car
  Only if you no longer have vehicle or have had it repossessed or have voluntarily surrendered back to finance company.
• Catalogue arrears
  if no longer using the service.
• Shopacheck, Provident, Greenwoods
  Plus other doorstep lenders.
• Disconnected mobile phone bills
• Monies owed from previous address(s)
  These could be Utility Bills, rent to a private landlord, mortgage shortfalls or in some circumstances even Council Tax.
• Overpayment of benefits
  Overpaid council rent, benefits or social loan, Only if your no longer in receipt of benefits.
• Private landlord rent
  Only if you are no longer living at the property.
• Business debts
  Only if the business is no longer trading.
• Professional Fees  
  Only Vets, Doctors, Dentists etc are no longer acting on your behalf or providing a service

There are other debts we can help with, but this will depend on their type and your personal circumstances. Please Contact Us for advice specific to your circumstances.