Debt Management Plans

If you do not qualify for an IVA, then a Debt Management Plan may be your best alternative.

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 talk with your creditors on your behalf and restructure your monthly repayments to an affordable amount.

Our debt specialists will negotiate with your creditors and may be able to have your interest frozen and arrange breaks in your repayments. We will definitely cut your monthly repayments and help you regain control of your expenses.

Repaying debts over a longer period of time 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

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 to arrange reduced payments and also 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.

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.
• Can be used to tide you over until your financial situation improves.
• It can be drawn up by you.

What are the Disadvantages of a Debt Management Plan?

The disadvantages of a debt management plan are:

• They are not legally binding.
• Creditors are free to take legal proceedings against you at any time.
• It is common practice for creditors to continue to obtain county court judgments, a third party debt order or a charging order against a debtor's property; even when they are making every effort to pay.
• Interest is not always frozen and, as you are in default, will continue to accrue at penal rates.
• You may never be rid of your debt.
• You must pay your creditors in full.
• It WILL be noted on your credit record.

Free Debt Management Plan advice

Act now. Call us free on 0800 16 999 46 or simply fill in the online application form on the right. Our initial advice is free and completely confidential so why not give us a call today...