Free Debt Counselling/Advice Links (also see below link to debt forums)

DEBTWISE is unable to provide debt counselling or debt adjustment advice. The aim of this page is to provide links to those organisations who may be able to.

Before taking any action please see the Government Insolvency Service leaflet available online (in pdf format) http://www.insolvency.gov.uk/pdfs/guidanceleafletspdf/indebt-web.pdf which covers options in dealing with debt and the implications of each option.

The following offer free debt counselling giving guidance to help re-organise household budgets and set up debt repayment programmes. NOTE : IT IS STRONGLY RECOMMENDED THAT ADVICE IS TAKEN FROM AN INDEPENDENT NON CHARGEABLE DEBT COUNSELLING SERVICE BEFORE ANY DEBT CONSOLIDATION LOANS ARE TAKEN OUT.

Personal debts including unsecured loans, catalogues, bank overdrafts are all non priority although setting up low payments can impact on your credit reference record. The benefit is making repayments that can be afforded and often persuading creditors to completely suspend interest charges. (NOTE : For SCOTLAND, Money Advice Scotland (0141-572-0237)
For NORTHERN IRELAND, Association of Independent advice Centres(028-9064-9519)  www.adviceni.net )

NOTE : Stop House Re-possession Companies  : A number of companies offer a service to find a buyer to purchase a house, and possibly rent the house back to the owner who wishes to sell. Before making a commitment to such a company please take advice from a reputable Debt Counselling Service. (see below Sale and Rent Back)

(0800-138-1111/08442 641919 ) www.stepchange.org

Initial telephone advice covering all personal debt problems including actions threatened by debt collectors, bailiffs, catalogue companies (whose debts are not enforceable without a signed Consumer Credit Act agreement !). In certain circumstances a Debt Management Plan can be set up where one payment is made via Step Change to creditors (free service). Step Change can also advise on Individual Voluntary Arrangements (IVA). Open 8am to 6pm Mon to Fri.

A Step Change Leaflet - '7 days to Deal with Debt-One week-Make it count' is available at many banks and is often in display.

National Debtline

(0808-808-4000) https://www.nationaldebtline.org/EW/Pages/default.aspx (England and Wales) , https://www.nationaldebtline.org/S/Pages/default.aspx (Scotland)

Similar to above although do not have facilities for Debt Management Plan. More of a self-help service. Can also advise on Bankruptcy.

National Debtline have several specimen letters on their site which are very helpful in writing to creditors

2 Ridgmount Street
London
WC1E 7AA  (0207 436 9937)

Linked to Consumer Credit Counselling Service (0800 138 1111). Advice about money management. Credit Action is a national money education charity and this website will tell you everything you are looking for.

Citizens Advice Bureau

(National number consumer advice line 08454 04 05 06 ) http://www.adviceuk.org.uk/

As above but can sometimes write letters direct to creditors where only token payments can be afforded i.e. min payment £1 per month. Advice depends on finding a local CAB and the waiting time!

It is best to take advice from free debt counselling services first. The Insolvency Service produce a free 'Guide to Bankruptcy'. Contact the Department of Trade and Industry for a copy.

Also obtain free advice on IVA's and Bankruptcy from http://www.insolvency.gov.uk/

Piggy's Bankruptcy Information website with lots of bankruptcy related information and advice  www.piggybankrupt.co.uk

Debt Advice/Voluntary arrangements/ Individual Voluntary Arrangement (IVA)/Scotland (Trust Deed)

For formal personal or business Voluntary Arrangements contact a licensed Insolvency Practitioner. It is recommended that a phone call be made to The Bankruptcy-Insolvency Debt Advice Service Helpline - Freephone 0800 074 6918 http://www.debtadviceuk.co.uk/  for advice first. It is important to avoid insolvency practitioners who charge and 'up-front' or 'set-up' fee. If further information is needed send an email to adv@debtwise.co.uk for the 'DEBTWISE IVA Help Sheet'.

Check costs as a formal Individual Voluntary Arrangement can cost £1500 to set up and creditors may still reject any proposals! Many of the companies advertising to 'reduce debts' or 'make one monthly payment over 5 years' actually set up an Individual Voluntary Arrangement.

Debt Watchdog www.debtwatchdog.com Provide independent debt advice and information or Debt Management and IVA.

IVA123 http://iva123.co.uk/ provide IVA advice and also general debt help including a blog.

For personal debt try CCCS (who can now set up IVA's) or National Debtline (above) first to get free advice. Advice from a free debt counselling service is strongly recommended before 'Debt consolidation loans' are considered.

SCOTLAND: Trust Deed Advice (Voluntary Arrangement in Scotland): Administered by a qualified Insolvency Practitioner, this allows those in Scotland up to £6500 to write off 90% of the debt with the rest spread across a period of 36 months. See  http://www.trust-deed.co.uk/what_is_a_trust_deed.php .

Business Insolvency

See your Accountant and if necessary contact a licensed Insolvency Practitioner to take professional advice. Care must be taken in dealing with Banks. Whilst in theory the bank might be supportive to overcome short term difficulties it might be tempting for them to call in the business overdraft !! NOTE: It is strongly recommended to request any advice from an Insolvency Practitioner, including agreement on fees to be confirmed in writing when that advice is to be acted upon.

Citizens Advice - You can get the phone number of your local bureau from the phone book, the local library or

www.citizensadvice.org.uk