What is Debt Management?
A debt management plan is an informal agreement designed to allow someone who is struggling to meet their monthly repayments the opportunity to make a single more affordable monthly repayment via a debt management company. In return for a management fee the company passes these payments to the creditors until the debts are cleared. The most important part of the management companies duties should be to negotiate an interest and charges freeze on the borrowers outstanding accounts and then regularly ensure that creditors continue this freeze during the term of the plan. They should also ask creditors not to take any legal action providing the borrower keeps making their regular payments. Amongst other duties the management company should also agree to handle/reply to creditors letters and enquires. Enquire Now.
What is an IVA?
An IVA is a formal agreement with your creditors and will last for 60 months. A meeting with your creditors is arranged (you need not be present) and a solution is offered to them. Upon agreement both interest and debt charges are frozen.
The IVA is supervised by an Insolvency Practitioner and the proposal of payment is legally binding. Your payments will be reduced into one, affordable monthly payment.
Upon completion of the IVA you will be considered 'debt free', although you may not have actually paid off all your debts. Any outstanding balances are written off.
What is a Protected Trust Deed? (Scotland only)
Under Scottish Law you may quality for a Protected Trust Deed. The Trust Deed is a legally binding agreement that provides a way to repay your debts. If you do qualify, you could write off up to 90% of the debt and pay the remainder in 36 affordable monthly instalments.
Similar to the IVA a Protected Trust Deed is supervised by a licensed Insolvency Practitioner, who is responsible for negotiations with your creditors and ensuring you keep to the terms of the Trust Deed.
What is Sale and Rent Back?
Guardian can arrange to purchase your property in as little as 7 days, enabling you to release vital equity to repay debts or stop repossession or pending eviction. We give you the option to remain living in the property, paying a monthly rent to us. The first years rent is taken from the sale price, meaning there are no rent payments for you to make in the first 12 months. We even give you the option to purchase the property back after 12 months.
You may choose just to sell the property to us and move on, saving you from paying estate agent fees and lengthy chains.
What is a Full & Final Settlement?
Our highly skilled and experienced advisors negotiate with your creditors, offering to pay a lump sump which is less than the full balance of your debt. In return for a lump sum payment we can arrange to write off the rest of your debts.
Often we successfully negotiate a settlement of between 40% - 70% of the total debt.
The Full & Final will suit a range of individual circumstances, whether you have received a lump sum from a family member or friend, or using our remortgage/secured loan options. Regularly we combine the Full & Final with our Sale & Rent Back service.
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