Debt Management Help from Guardian Debt Management

Guardian Case Example 1
- Client A owned £143,630 in unsecured borrowing with 19 different creditors. Monthly contractual payments were £2,419.20. We arranged an IVA which results in the monthly payments being reduced to an affordable £725.70. At the end of the 5 years Client A will have repaid £43,542 and will have seen £100,080 of debt written off.
Guardian Case Example 2
- Client B owned £73,000 and had received threats of bankruptcy. His contractual payments were £1,700 per month. We managed to arrange an IVA which resulted in monthly payments of £622. After 5 years he will have written off £32,000 of debts.
Guardian Case Example 3
- Client C owned a property valued at £170,000 and a mortgage of £89,000. They had unsecured borrowings of £53,000 and wanted to remortgage to consolidate the debts. The maximum loan to value on a remortgage available to the client was 75%, meaning they could only borrow £127,500 which was not sufficient to repay all their loans. We managed to agree a Full & Final settlement of £36,500 with the unsecured loan creditors enabling them to complete on the remortgage.
Guardian Case Example 4
- Client D approached us and disclosed that they had a repossession hearing in 6 days. They had already been declined a remortgage due to an adverse credit profile. We agreed to purchase their property from them and agreed to rent it back to them enabling the clients to remain living in the property. We further negotiated a Full & Final settlement on their unsecured debts enabling them to repay these loans with the additional funds they received from the sale.

What is Debt Management?

The Debt Management Programme is not intended to be a long term solution; it serves as a gateway for you to start prioritising your debts and regain control. It allows you to pay your household bills first (mortgage, gas, electricity, council tax etc...) then offer a reduced payment to your unsecured creditors (personal loans, credit cards, HP agreements etc...).

A longer term solution is provided once the Debt Management Programme is established.

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.

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.