Debt Management
Personal Touch Debt Solutions offers help and support to enable people to get back in control of their finances, as a result of unmanageable debt. The rapid increase in mortgage and other interest rates, lack of mortgage deals and the high cost of living, has resulted in many more people struggling to make ends meet. In these circumstances, we can help by providing honest, independent and helpful debt advice. We provide a range of solutions which ensure that a plan is put in place to suit the client’s individual needs.
Debt Management
Debt Management is a financial solution that will allow the client to make affordable monthly payments to their unsecured creditors. A full affordability statement will be completed taking into account all expenses leaving a disposable income which will be the figure that we negotiate with the creditors as the full amount available to be paid on a monthly basis (the minimum disposable income is £125 per month).
In the majority of cases, the creditors will accept the proposal and agree to freeze the interest. The client has the responsibility of making one payment to Personal Touch Debt Solutions who then distribute the payment to the creditors. The client is still responsible for paying off the amount owing to the client over an extended period
A client can enter into a debt management programme immediately.
IVA
If the client has 3 or more creditors and owes more than £15,000 in unsecured debt, it is likely that this solution may be the most suitable for the circumstances. In addition, the client must be employed or self employed (able to prove income) and have surplus income of £275 per month after taking into account all expenses. An IVA is a legally binding agreement and normally runs up to 60 months. The IVA is managed by an Insolvency Practitioner who needs to obtain agreement from a minimum of 75% of the creditors before proceeding.
The Insolvency Practitioner will request the creditors to accept the proposal of a reduced payment once they have confirmed the information on the affordability statement is incorrect. The interest will be frozen on all accounts.
Trust Deed (Scotland)
If the client has 3 or more credit agreements and owe more than £10,000 in unsecured debt, it is likely that this solution could be the most suitable for the circumstances. In addition, the client must have surplus income of £150 per month. A trust deed is a legally binding agreement and normally runs up to 36 months. The IVA is managed by an Insolvency Practitioner who needs to obtain agreement from a minimum of 75% of the creditors before proceeding.
The Insolvency Practitioner will request the creditors to accept the proposal of a reduced payment once they have confirmed the information on the affordability statement is incorrect. The interest will be frozen on all accounts.
Full and final settlement
A "full and final settlement" is when we act on behalf of the client and ask the creditors if they will accept a lump sum payment which is less than the full balance that is outstanding on the current debt. In return for having a lump sum payment the creditor agrees to write off the remainder of the debt.
The Financial Services Authority does not regulate debt management services
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Treating Customers Fairly is a core principle of our company and the way we conduct our business.
If I had my way, I would write the word "INSURANCE" over the door of every cottage and upon the blotting book of every public man, because I am convinced that for sacrifices which are inconceivably small, families can be secured against catastrophies which otherwise would smash them forever. - Sir Winston Churchill.