Free Debt Advice

Debt relief orders free debt relief

If like many Britons you have spent the last few years amassing a large amount of debt only to find that now you cannot make the payments take courage as there are solutions available and a plenty of free debt advice to help you find a solution to your problem. It can be hard to think when the phone keeps ringing and the mailman brings you letters from debt collectors on a daily basis, but you need to stop for a moment and take a deep breath. You are not alone and there is help available for you that can get you out of this mess. 

Who Can I Turn To? 

With the vast numbers of people in the UK who are now suffering under the crushing weight of so much debt there are actually several agencies that provide safe, free debt advice aimed at helping you get out of the mess you have found yourself in. The most popular one in use today is the Citizens Advice Bureau with a staff of fully trained professionals who can help you set up an IVA or debt management program by putting you in touch with the right people.

In 1991 the government established the National Debt Helpline; this organization is there to help you by telephone only so that you can remain anonymous. Their staff can provide you with the information you need to get started down the long road to financial recovery. The CCCS or Consumer Credit Counseling Service was set up to provide you with information regarding your rights and the things you can and cannot do to sort out your credit mess.

I Lost My Job

Losing your job is the fastest way to find yourself unable to pay your bills, unfortunately unless you took out the insurance offered by your credit card company, they are still going to want their payments. However if you meet the criterion established by the government you may be entitled to a free debt relief program. This program is commonly known as the DRO or Debt Relief Order program, but the requirements you must meet to be eligible for it are very strict.

In order to qualify for Debt Relief Orders, you must have been legally declared insolvent, which means you are completely unable to pay your bills. You must not have more than £15,000 in unsecured debt and have less than £300 in personal assets excluding a car which can be worth no more than £1,000. This list of assets does not include your household belongings such as clothes and furniture that is considered a necessity. Lastly after all of your essential monthly bills have been paid you must have £50 or less in disposable income.

If you meet these requirements all of your debt is removed from you and placed on hold for a period of 12 months. As long as your circumstances do not change for those twelve months your debts are written off completely. Strictly speaking the DRO is not free as it will cost you £100, but compared to many of the other programs this is as close to free as you can get.