Using Government Schemes To Clear Debt

Throughout this article we’re going to explore ways you can take back control of your finances and use government schemes to clear debt.

If you’re one of the millions of people struggling with debt, you may feel like there’s nowhere to turn.

But, there are actually a number of government schemes in place to help those in debt.

It’s essential, that if you’ve found yourself in a situation where you owe money.

That you research and explore all of the options available to you.

This will not only give you more confidence but also better the chances of solving your financial situation.

Based on the idea that you have inspected all of the potential solutions and picked the one that’s right for you.

What Is A Debt Repayment Scheme?

A debt repayment scheme is a government-backed program set up to help those who are struggling with repaying their debts.

The scheme is designed to clear the debt within a certain number of years, through affordable monthly repayments.

This allows people to have a much clearer path and better understanding as to how they’re going to relieve themselves of their debts.

When trying to accomplish something clarity is one of the most important factors when making it happen.

It provides people with answers and allows people to be much more decisive with their actions.

Furthermore if you have multiple debts it can take away the immediate stress and allowing you breathing space.

Simplify your goal, making it much more obtainable.

How Do I Repay My Debt Through A Scheme?

The first step is to research and look for a government debt repayment scheme that you’re eligible for.

There are a few different schemes available, so it’s important that you find the one that best fits your specific circumstances.

After finding the right scheme for you, the next step is to complete an application form and submit it.

Once your application has been approved, you will be required to make monthly repayments until the debt is clear.

What Are The Different Types of Debt Repayment Scheme?

The two main types of government schemes for repaying debt are:

– Individual Voluntary Arrangement (IVA)

– Debt Relief Order (DRO)

An IVA is a formal agreement between you and your creditors to repay your debt over a set period of time, usually 5 years.

Your repayments will be based on what you can afford to pay back each month and once the agreed term is up, the remainder of the debt will be written off.

To be eligible for an IVA you must:

– Owe more than £5,000

– Have more than one creditor

– Be unable to repay your debts in full within a reasonable period of time

A DRO is a government scheme available to those who owe less than £20,000 and have few assets.

If you’re eligible for a DRO, your debts will be frozen and after a period of 12 months.

To be eligible for a DRO you must:

– Owe less than £20,000

– Have few assets

– Have a low income

– Not have been subject to a DRO in the last 6 years

If you’re struggling with debt, it’s important that you explore all of the options available to you.

A government debt repayment scheme could be the answer to getting your finances back on track.

Does The Government Approve Debt Repayment Schemes?

The government does approve of debt repayment schemes however they are not necessarily a direct part of the scheme.

This means that the government does not provide any funding for the scheme but does give it the thumbs up for people to use.

As we’ve previously mentioned, being in debt can be extremely stressful so any support you can get is welcomed.

The government recognises this and that’s why they approve of debt repayment schemes.

When using a government scheme to clear you debt, it’s essential that a payment plan is put in place.

This can appear a very daunting process, but stick with me, it’s more than achievable.

There are many debt professional such as Consumer Debt Help (https://consumerdebthelp.info) (quote tool)

Such professionals work along side you and help create a debt repayment plan.

Aiding you through the process of organising your payment plan to clear debt.

Relieving you of you financial stress.

And providing you with a clear path ahead for you to become debt free.

What Is The Governments Stance On Paying Back Debts?

The government’s stance on paying back debts is clear, they believe that people should make an effort to clear their debts.

But, they understand that there are many different circumstances as to why someone may have got themselves into debt.

This is why the government has put in place a number of schemes and organizations to help those struggling with money troubles.

Paying back your debts should be a priority but, if you’re finding it difficult there is help at hand.

Organisations such as Consumer Debt Help have a number of resources which can help you clear your debt.

The government wants people to clear their debt and become financially stable.

If you’re struggling with debt, make use of the government schemes available to you and get yourself back on track.

Take control of your finances today and use a government scheme to clear your debt!

What Is The ‘Breathing Space’ Scheme?

Breathing Space, officially called the Debt Respite Scheme.

It is a government scheme which could help relieve some of the pressure and stress caused by being in debt.

The Debt Respite Scheme, or Breathing Space aims to help relieve some of the pressure of dealing with your creditors.

This then allows you to focus on getting debt advice and setting up your debt solution.

All without worrying about being chased for payment or incurring extra charges.

How does the Breathing Space scheme work?

The timeline below shows the Breathing Space process.

It can take patience and persistence.

But it can be very worth while if you’re someone in need of financial support.

If you’re eligible, you can get free debt advice from Consumer Debt Help (https://consumerdebthelp.info) (quote tool) to start your application.

Step by step how the Breathing Space Scheme works:

Get debt advice

If you decide to receive debt counseling from us, we’ll look into whether Breathing Space might be valuable to you and whether you qualify.

Apply

If you’re eligible and wish to apply, you’ll submit your application to the insolvency service, which will handle the administration of the program.

Breathing Space starts

Your Breathing Space will begin once your application has been submitted.

It is generally completed within two working days.

First 20 days

During the first 20 days of the scheme, creditors can challenge your application for Breathing Space, as well as specific debts being included in the scheme.

Add debts

You may add a debt to Breathing Space after it has begun as long as the debt existed before your Breathing Space.

The protections will then be in effect for the rest of 60 days.

For example, if a debt is added to Breathing Space on day 10, it will be protected for 50 days.

It can’t be added if the debt was incurred after your Breathing Space began.

Creditors given time to review

When a new debt is added, the clock for creditors to challenge its inclusion restarts.

This only applies to the new debt, however other debts are still protected.

30 day review

We’ll assess your position after 30 days.

In most situations, this will result in the plan continuing for the full 60 days.

Breathing Space, on the other hand, may be halted or specific obligations might be forgiven in certain situations.

Get In Touch – Use Government Scheme To Clear Debt

If you’re tired of feeling as though you’re being chased for money you owe.

Or are someone who wants to take back control of their financial situation.

Get started today.

Debt is something that needs to be faced.

The longer the problem is left, the bigger it becomes.

Don’t leave it too late.

Contact Consumer Debt Help and see if you qualify for government approved debt help.