At UK Debt Expert, all advice is free and confidential.
If you decide to enter into a debt solution, fees may apply depending on your chosen solution and provider. These fees are normally paid from the monthly contributions you make towards your debts, rather than being charged upfront.
Any applicable fees will be clearly explained to you before you make any decision about entering a solution.
| Solutions | Fees |
|---|---|
| Debt Advice | Free. |
| Debt Management Plan (DMP) | Fees may apply (paid to your chosen provider). |
| Debt Arrangement Scheme (DAS) | Free to apply. Ongoing fees may apply and are paid to your provider (Carrington Dean Group Limited). |
| Debt Relief Order (DRO) | Free. |
| Bankruptcy | £680 application fee (paid to Insolvency Service). The fee consists of a £130 adjudicator charge for processing your application and a £550 deposit paid to the Official Receiver to cover various administrative costs. |
| Individual Voluntary Arrangement (IVA) | Fees apply (paid to UK Debt Expert Limited). These are typically deducted from your agreed monthly contributions once the IVA is approved. |
| Trust Deed | Fees apply (paid to UK Debt Expert Limited). These are typically deducted from your agreed monthly contributions once the Trust Deed is approved. |
Debt solutions can be a positive way to manage what you owe, but it’s important to understand all potential impacts before proceeding.
Every solution has both advantages and disadvantages, such as effects on your credit rating, borrowing ability, and potential impact on assets.
For example, it's important to be aware that if you choose to enter an IVA or Trust Deed, at first more of your payment will go on fees, but over time more will go to your creditors. It's also important to note that if your IVA or Trust Deed fails early, you may not receive any debt reduction as all repayments may have gone towards fees of the arrangement.
Your advisor will go through the advantages and disadvantages of all possible solutions in detail to ensure you’re fully informed before making any commitment.
You can also read more about the advantages and disadvantages of each solution here.
Free and impartial advice is also available from MoneyHelper, an independent service set up to help people understand their options.