Debt Adjusting


In recent years and for the past last decade, growing level of Debt has become a major concern for many of us as it can affect anyone anywhere. Hence the importance of advice for the debt solution has gained utmost importance. The advice made for any particular debt solution needs to be aligned with your expectations and situation. There are numbers of formal and informal debt solutions available in the UK market depending upon your needs and circumstances. Before you choose any debt solution for yourself, we emphasize you to seek guidance from the attached:


The above can guide you in deciding the best option available for you along with associated risks and advantages. The matrix will provide you with answers of all the immediate questions which can come to mind before you select any debt solution. The best option for you will depend on your own and your family’s circumstances and future Advantages, and on your own preferences. What you decide to do will also depend on how much you owe and how much you can repay from your income or your assets, after paying your own and your family’s basic expenses. Out of all the debt solution options available in market, First Credit Advice Limited only offer the following in-house option, provided if you are satisfied that this is the best option available to you. For all the other options we shall recommend you to the best available solution provider.

We represent the client who are under debt problems. We can suggest the debt solution which is most appropriate to their situation. We feel pleasure in helping people getting out of the debt and bringing a smile on their faces.


Negotiating Financial Agreements


We renegotiate the loan agreements with your lenders on your favourable terms according to your affordability as per the income and expenditure statement you provide. It consists


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Negotiation for Goverment / Tax Debts


Tax Debts also known as Revenue debts including overpaid benefits, self-assessment tax, VAT and PAYE/NIC generally cannot be included in a DMP although tax debt is an unsecured debt. The numbers of self-employed have increased over the years and now account for around 15% of the working population. It is not a surprise therefore that the numbers of individuals struggling with tax debts is increasing as well. Dealing with arrears of tax debts is not easy. HMR & C generally will pursue the strategy that tax debts need to be paid as they fall due and if not you risk getting penalties and will face action. The longer you leave it, the more difficult it is to achieve an agreeable payment plan with HMRC.

The main reason is that it will normally take many years to repay your debts in full using this type of informal debt solution and HMRC will not be prepared to wait that long for their money. First Credit Advice will help you to get an agreement for a separate ‘Time to Pay’ arrangement with HMRC which will get the outstanding tax paid within 12 to 24 months. Once this is in place you can then use whatever disposable income you have left to negotiate with your remaining creditors.


Negotiations Mortgage Arrears


First Credit Advice Limited will assist you with your mortgage arrears by making reduced and affordable repayments towards your outstanding balance of arrears. The repayments will be calculated after generating your realistic budget and disposable income thereafter. The main features of repayment arrangement with your lender consist of:

  • Freezing down interest on the outstanding balance
  • Reversal of the arrear charges and late payment charges
  • Lender not pursuing you for the payment of outstanding debt unless you are paying minimum Norgan Amount applicable

Mortgage Short Fall Debt


This happens when the amount your home is sold for is not enough to pay the outstanding mortgage and any secured loans. Money you still owe to your mortgage or secured loan lender in this situation, is called a 'mortgage shortfall'. In other words, a shortfall occurs when the value of a seller's remaining mortgage is greater than the sale price of their property, forcing the seller to pay the difference in order to discharge the mortgage. Mortgage short fall debt is an unsecured debt.

A lender can only recover a shortfall debt if it is viable to do so and if they do, they must tell you in writing, within six years of the date your home was sold. Mortgage shortfall debt will become statue barred under Limitations Act 1980 after 12 years of the sale of property.

Please call us to:

  • Find out how long you can be pursued for a mortgage shortfall debt;
  • Check your rights if you owe a mortgage shortfall debt jointly with someone else;
  • Find out if it is worthwhile disputing the amount your lender says you owe;
  • See if you can complain about your mortgage lender; and
  • Get some practical advice about your options to deal with your mortgage shortfall debt.
How Can We Help:

We will represent you for the mortgage shortfall debt case and will take up this matter with your lender. We can either:

  1. Get this debt written off
  2. Get a substantial discount form the lender
  3. Make a suitable payment arrangement with lender for the discounted amount
Periodical Reviews

We shall conduct periodical reviews of your financial circumstances for the following reasons:

  • To ensure that you receive appropriate advice and your debt solution continue to be suitable to your individual needs.
  • Information provided to lender remains accurate and realistic.
Our Offer to you
  • We offer you a free first bi-annual and annual review with all your creditors.
  • If we have to reschedule or restructure your payment plan during one-year time we will not charge you any amount.
  • Restructure of Reschedule your payment plan after first free annual review you will be charged flat £100.00 for every debt.
It is very Important to known that
  • You will be making the payment to the lenders directly
  • We shall deal with any further correspondence you receive from lender or anyone who is dealing on lender’s behalf.
  • This contract is an open-ended contract unless cancelled by you or cancelled by us.

Debt Solution Methodology


All Debt Solutions should be very carefully considered. Fees will be charged if a solution is taken in order for us to set up your plan and maintain it. All fees will be outlined during your consultation. For further information on fees, please see relevant section of the different solutions available. FCAL complies with the Consumer Credit Act and you have the right to a cooling off period of 14 days. It is likely that your ability to obtain credit in the short term will be affected and this may also be the case over the medium to long term.


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Further Information about Free Advice


Other guides can tell help you in dealing with your finances generally, for example the Money Advice website which you can access by following this link: The Money Advice Service