What is a Debt Management Plan?
A Debt Management Plan is a straightforward payment plan designed to help you on your way to financial recovery.
In a Debt Management Plan, we work out what you can afford to pay then negotiate with your creditors on your behalf to restructure your monthly repayments. Where possible we will also get interest and charges on your debts frozen (although we cannot guarantee this).
A Debt Management Plan is flexible and has no fixed term so it can be adapted to suit your needs if your circumstances change.
Debt Management Plan Charges »How can a Debt Management Plan help me?
It allows you to make one reduced monthly payment based on what you can afford rather than what your creditors are demanding.
A reduced monthly payment makes it easier for you to stay on top of your finances, making day-to-day life much easier.
We take away the hassle of dealing with creditors. Once you start your debt management plan we will deal directly with your creditors, distribute your monthly payments and handle any creditor enquiries on your behalf.
We will negotiate to try to get interest and charges reduced or frozen by your creditors. This can save you money as what you pay goes towards reducing your balance, rather than just paying off the interest.
If you are struggling with debts of £3,000 or less our unique
low cost debt management plans have been tailored specifically to help you.
What are the Advantages of a Debt Management Plan?
The advantages of a debt management plan are:
- You make payments that you can afford.
- Your payments can be reviewed every so often so that any changes to your situation can be taken into account.
- It can be used to tide you over until your financial situation improves.
- Payments for all debts included in the plan are combined into one monthly amount.
What are the Disadvantages of a Debt Management Plan?
The disadvantages of a debt management plan are:
- They are not legally binding so creditors are still free to take legal proceedings against you at any time.
- Reducing the amount you pay means you will be repaying your debts over a longer period of time and may increase the total amount to be repaid
- Your ability to obtain credit will be affected in the short term, and possibly in the medium to long term.
- You are still liable for paying your debts in full.
What will a Debt Management Plan cost me? »Free Debt Management Plan advice
Act now. Call us free on
0800 16 999 46 or simply fill in the online application form above. Our initial advice is free and completely confidential so why not give us a call today...
Insolvency Practitioners at Money Debt and Credit Ltd act without any personal liability
Money Debt and Credit Ltd, Registered in England & Wales No.05588842.
Registered Office: 45 Clarendon Road, Watford WD17 1SZ