Problems with Payments
In the UK there are thousands of people having with payments on loans, store cards, credit cards, overdrafts and other unsecured debts. Please tell us immediately if you think that you are going to find it difficult to pay your debts. We will give you help and advice on the various debt arrangements on offer and other budgeting options on 0800 0789 544 or apply online.
Payment problems: if you can't pay the your debts
Our debt advice team can provide detailed advice tells on what consumers should do if you are having problems paying debt. The experienced debt advice teams are able to provide information and debt solution ranging from basic budgeting to filing for bankruptcy.
Budgeting
Please note that budgeting makes it easier for you to meet your payments. A detailed financial budget can to create a personal list of priority payments reminding you of when payments are due and which ones are to be paid in priority.
Problems with payments - which debts should you pay first?
Priority Debts
- Mortgages and secured loans
- Rent arrears
- Rent arrears - a guide
- Tax, national insurance and vat
- Tax credits overpayments
- Council tax
- Utility bills
- Hire purchase (hp) debt
- Business rates
- Magistrates’ court fines
- Maintenance and child support payments
Non-Priority Debts
- Credit card or store card arrears
- Catalogue debts
- Water rates arrears
- Bank overdrafts and loans
- Personal loans with finance companies
- Loan shark loans
- Money borrowed from friends or family
Bankruptcy or Individual Voluntary Arrangements
If you are having problems paying debts and your income is barely enough to cover living costs, you might want to take a look at government schemes such as an IVA or bankruptcy.
IVA to deal with problems with payments
IVAs were introduced to provide individuals with an alternative to bankruptcy. The types of debts dealt with by IVAs can include personal loans and credit-card balances. An IVA is a legally binding contract between a debtor and their creditors. It allows an individual to settle a debt within a reasonable and fixed period of time, usually five years.
Bankruptcy to deal with problems with payments
Bankruptcy is an option that often has to be considered when an individual cannot pay their debts as they fall due. A first time bankrupt with debts will generally receive their discharge one year after the date of the bankruptcy order (there is the possibility that in some cases the bankruptcy discharge period will be less than one year).
Debt Management to deal with problems with payments
A Debt Management Plan is an affordable repayment programme set up by a debt management company. We help you work out what you can afford to pay each month. You pay this amount to the debt management company. A debt management company pays your money to all your creditors for you. A Debt Management Plan is a good option for people who can afford to make regular payments to their creditors and want an easy, hassle free way to pay.
Other methods to deal with problems with debt payments are:
- Debt Relief Order
- County Court Administration Order
- Protected Trust Deed (Scotland Only)
- Consolidation Loans
If you are having problems with payments please call our advice team or apply online. Our advice team will discuss your case and recommend a debt or budgeting solution to help you to address your debt problems.
