Tough times demand tough measures for those in debt

As inflation and jobless claimants rise, Atlantic urges indebted to seek help

Related topics:  Finance News
Millie Dyson
19th May 2011
Latest News
This week’s double dose of worrying news for those already in debt should act as a catalyst to seek help according to Atlantic Financial Management, the debt solutions adviser and DEMSA member. 

The annual inflation rate has risen to 4.5% and while the unemployment rate has fallen marginally, those seeking Jobseekers’ allowance went up by 12,400 in April.

Kevin Still, Atlantic Director believes that the UK is on the threshold of a major rise in consumer debt problems, particularly amongst middle class households and self-employed saddled with large mortgages, loans and credit card debts.

He said:

“This is not just a case of more belt-tightening for those struggling to make ends meet. For many, the situation is becoming much more desperate.

"The combination of stagnant income or job losses against increased living costs is driving the perceived ‘comfortably off’ into distinctly uncomfortable territory and debt. Many may be entirely new to the debt recovery practices of leading lenders and their appointed debt recovery and legal agents.

“A rise in interest rates will provide another hammer blow to those already finding it difficult to meet mortgage payments and with predictions of inflation hitting 5% this year due to higher utility bills, it is crucial those in debt seek help before their situation worsens.”

A Debt Management Plan from a debt solutions provider such as Atlantic can prove invaluable when unsecured debts become unmanageable.

A new schedule of payments can often be negotiated with all the creditors and will ensure rent, mortgage, energy, critical insurances and council tax bills get paid before other unsecured debts.

Atlantic Financial Management offers a range of debt solutions including Debt Management Plans, IVAs, Protected Trust Deeds and Bankruptcy advice and its expert legal support team prioritises dealing with any court actions an individual or household may be facing. It also offers a number of money saving tools including energy switching and a prepaid current account.

One of Atlantic’s trained and understanding Debt Advisors will confidentially discuss an individual’s financial circumstances over the phone and provide initial debt advice without obligation. Once they know more about the current financial situation, the best debt solution for their circumstances will be recommended.

If a Debt Management Plan is chosen, Atlantic will then complete a statement-of-affairs, from which it can work out which payments are prioritised and which can be negotiated.  Priority debts, such as mortgage, secured loans, rent, council tax, priority insurances and utility bills must be paid first and Atlantic makes allowances for these in the client’s monthly budget and statement of affairs.

Atlantic’s business model is based upon very early contact with your creditors to advise them of their appointment and to commence the debt repayment negotiation process at the earliest point possible.

Atlantic is licensed to use the Common Financial Statement, which is widely accepted by creditors and their collecting agents. Part of the Atlantic model is to look at benefit entitlements and ways of optimising income.
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