Finding a way out of debt
There are various debt solutions available to anyone in debt so it is important to acknowledge that there will always be help available. Choosing a debt solution can be difficult however, with so many options available it can be tough to know which to choose. This is where Payplan will help.
When you call us, our advisers will talk you through each and every option, discussing the pros and cons, whether you qualify and how each debt solution will impact your lifestyle. In the meantime however we’ve put together a comparison table of all the debt solutions so you can compare them for yourself.
Use this chart to find out more about what options are available and when you’re ready get in touch with us and we’ll help you find a way out of debt.
|Trust Deeds||Sequestration||Minimal Asset Process (MAP)||Debt Arrangement Scheme (DAS)||Debt Management Plan (DMP)|
|Duration||4-5 years||Usually after 1 year but could be up to 4 years with a contribution order||6 months||Until the full amount of your debt has been repaid. May be able to get debts written off after 12 years.||Until your debts have been fully repaid.|
|Assets||Assets may be realised||Assets at risk||Most debtors who enter MAP won’t have any assets or assets of much value.||Protected||Creditors could pursue your assets by taking legal action against you.|
|Interest/charges||Guaranteed to be frozen||Guaranteed to be frozen||Guaranteed to be frozen||Guaranteed to be frozen||No guarantee|
|Creditor contact||Creditors cannot take legal action||Creditors cannot take legal action||Creditors cannot take legal action||Creditors cannot take legal action||Creditors could take legal action against you|
|Credit Rating||Stays on credit file for minimum of 6 years, or until the Trust Deed has ended – whichever is the later||Stays on credit file for a maximum of 6 years||Stays on credit file for a maximum of 6 years||Stays on credit file for minimum of 6 years, or until the DAS has ended – whichever is the later||A DMP won’t be recorded on your credit file, but defaults for lower than agreed payments can be registered at any time. Defaults stay on your credit file for 6 years from the date they are registered.|
|Debt write-off||Debts are written off when the Trust Deed ends||All debts are written off||All debts are written off||You are required to pay back the full amount of your debts, although you may be entitled to apply for debt write off after 12 years.||You are required to pay back the full amount of your debts.|
|Public Register||Trust Deeds are listed on a public register||Sequestrations are listed on a public register||MAPs are listed on a public register||DAS is listed on a public register||There is no public register as a DMP is an informal debt solution|
|Windfalls||Must be declared and must normally be paid into the Trust Deed.||You are required to pay any windfalls to the trustee until you’re discharged from your sequestration.||You are required to pay any windfalls to the trustee until you’re discharged from your MAP.||Do not need to be paid in. However, if they are paid in, it will reduce the length of the DAS.||Do not need to be paid into your DMP.|
If you are struggling to pay your debts, get in touch with PayPlan. All our advice is 100% confidential and free. We will offer advice and support on whatever you need, from creating a budget to how to apply for one of the above debt solutions. It is important to remember you are not alone in debt, we are here every step of the way and will do everything we can to help you get your life back on track.
You can contact us on 0800 280 2816 or by clicking the ‘Get Advice Now’ button below.