Debt Advice & Debt Management

 

Debt Advice & Debt Management (Not Regulated by the FCA)

• (This service is not regulated by the FCA and therefore the Terms of Business published on the site does not cover this particular service)

You are not alone - You may think that it’s only you who dreads the morning post or the telephone ringing, or that moment when you put your card into the reader at the checkout. Well it’s not!

There are many reasons why more and more people and households are finding themselves in serious financial difficulty, and often for the first time. The fallout of the 2007/2008 “Credit Crunch” is the biggest contributor with business closures and people losing their jobs, falling incomes, banks tightening up and even stopping lending or calling in existing borrowing. It’s unprecedented, and really, you aren’t alone!

You may be feeling embarrassed about your situation, but don’t. We’re here to help.

Act Now - It can be difficult to see the light at the end of the tunnel when you have serious debt problems that are getting worse and worse what with all the penalty charges and additional interest being added. But if you simply bury your head in the sand hoping that it will go away you could find yourself, if not already, facing serious issues such as Default Notices and County Court Judgments and of course a worsening credit record.

Taking action as early as possible will help you to avoid many of these problems as well as reducing the severe stress that you are most likely experiencing as a result of your debt.

Completing our
Affordability Checker will straight away highlight the extent of the difficulties which may lay ahead or which you may already be suffering and it can be accessed from the link opposite.

Who can we help?

We are most likely only able to help people who have a regular income from employment or self-employment. If you are unemployed we’re sorry but we probably won’t be able to assist you.

What do we do?

We offer two services:

• House in Order

When things get on top of us it’s easy to lose track so for this we have our one-stop House In Order service. This is a “kitchen table” solution whereby we help you sort out what you owe and to whom and we provide you with a scheduled payment plan so that you can ensure you pay each of your liabilities by their due dates, including catching up on any arrears or missed payments which may have built up.

It’s likely that your credit rating will have suffered whilst you’ve been having problems so we’ll also give you useful budgeting tips and explain how over time you can rebuild your credit rating.

For this service we charge a single fixed fee based upon the number and value of your credit accounts but typically it will be between £150 and £250.

There is no charge for an initial consultation and we will not undertake any chargeable work without first agreeing our fee with you.

• Debt Management Plan

This service will appeal to clients who are not able to maintain the contractual or minimum repayments on their debts.

If you choose our Debt Management Plan we deal with your creditors directly and all future correspondence and communications from your creditors will be directed to ourselves so no more stressful letters or telephone calls.

We work out with you a monthly budget and affordability plan and based upon how much you can pay towards your debts every month we deal with your creditors in setting up reduced payment arrangements and thereafter you pay just one affordable monthly payment. In dealing with your creditors we will endeavour to obtain agreement for interest to be frozen but as this will be at the creditor’s discretion, we can’t guarantee it.

At six monthly intervals we will review your monthly budget and affordability plan with you with a view to increasing payments to creditors where possible in order to repay your accounts as quickly as possible*. Also, when an account is repaid we will distribute the corresponding monthly payment to one or more of your remaining accounts in order to repay your remaining accounts more quickly*.

It’s likely that your credit rating will have suffered whilst you’ve been having problems so we’ll give you useful budgeting tips and explain how over time you can rebuild your credit rating.

For this service we charge a setting up fee based upon the number and value of your credit accounts, but typically will be between £200 and £400, plus included in your affordable monthly payment plan will be a monthly service charge equal to 10% of the payments made to your credit account (subject to a minimum monthly charge of £50).

There is no charge for an initial consultation and we will not undertake any chargeable work without first agreeing our fee with you.

*Repaying Your Credit As quickly As Possible – Why?

The quicker you repay your creditors the quicker you’ll rebuild your credit rating. Credit account history remains on your credit file for a period of six years following the repayment of the account so the quicker you repay an account the sooner that account will show as “Settled” and the sooner it eventually disappears from your credit file.

Meanwhile, under your Debt Management Plan month by month your credit record will improve because each month your credit file is updated with the last 12 months’ payment history so if any of your accounts are in arrears, after 12 months on the Debt Management Plan your credit file will start to show a clear payment history.

Similarly, if any of your credit accounts have already incurred a Default Notice or are the subject of a County Court Judgement (CCJ), it is important that these are repaid (“Settled”) as soon as possible to improve your credit record.

Reduced Settlement

Creditors will sometimes offer borrowers a reduced or discounted settlement which means they will accept a lower lump sum payment as full and final settlement of an account. Although many Debt Management companies actively pursue this as a means of repaying a debt, and it does sound good on paper, we don’t advocate it because your credit file will then have a marker put against the settled account showing that you did not repay your liability in full.

Account Write-Off & Removal of Adverse Credit Information

Many Debt Management companies advertise that for an upfront fee they can arrange for credit accounts to be written-off or have Default Notices or CCJs removed from your credit file. It is exceptionally rare for a credit agreement or a Default Notice or a CCJ to be invalid for not complying with the Consumer Credit Act 1994. We therefore do not recommend anyone paying any such fees to these companies.

Borrowing Your Way Out

If you’re experiencing financial difficulties taking on further borrowing is not likely to help. It may provide brief relief from all the letters and phone calls but in the end it’s most likely to make your situation worse. In any event if you’ve recently missed payments on your existing credit accounts or have a Default Notice and/or CCJ registered against you you’ll very likely be declined further credit anyway. And remember that each time you apply for a loan or credit a search “footprint” is recorded your credit file which will remain there for 12 months and the more searches you have on your credit file lower your credit score.

Ethical Approach

There is no magic fix or easy way out of indebtedness. If we borrow money we have an obligation to pay it back, even if our circumstances change, and that’s what we will help you to do, meet your obligations.

Light at The End Of The Tunnel

It’ll very likely take you some time to repay all your accounts but whether you choose our House in Order service to get you back on track or our full Debt Management Plan, from day one you’re guaranteed to feel so much better because you’ll be back in control and there’ll be no more stressful letters or hounding phone calls.

If you would like to speak us about our Debt Advice & Management services, or to arrange an appointment, please call us on LoCall number 08456 120 375 or 01761 411 775 or email us your contact details with a preferred contact time by clicking here.

We look forward to hearing from you.

 
Michael W Hoare t/a Hallmark Mortgages & Equity Release
The information contained in this website is subject to UK regulatory regime and is therefore restricted to consumers
based in the UK