Debt Management
A debt management plan or arrangement can offer you a simple and effective route out of debt. If your circumstances are suited to a debt management program we will advise you accordingly and suggest the most effective way to proceed. We understand the pressures and stress that you face with unmanageable volumes of debt – our services are designed to offer you a sensitive and understanding solution – guiding you back onto the road to debt freedom.
In general if your debts are higher than £15,000 and you have a salary or reasonable disposable income then an IVA is often the most suitable option. However, for those with lower debt or levels of disposable income then a Debt Management Program or other debt solution may be the correct solution for you. If we feel a Debt Management Program is more appropriate to your situation we will recommend a company best place to service your requirements.
Please take our Debt Test to see which option may be most suitable for you. Alternatively call us free of charge on 0800 043 2424 now. You can also provide extra information so we can fully assess your situation here.
What is a Debt Management arrangement?
A Debt Management arrangement is an informal agreement made by your debt management company with your creditors to repay unsecured debts. Your debt management company can arrange for you to make a single monthly repayment which will be distributed to your creditors under the terms of the agreement with them. As part of your agreement with your creditors, your debt management company may request that interest and penalty charges are stopped or reduced so that your final repayment is fixed and does not increase. Please note that this is not guaranteed for all creditors and as the arrangement is informal, interest can be reapplied at any time.
How do I qualify for a Debt Management agreement?
To qualify for a Debt Management agreement you must have more than 2 creditors with combined debts of more than £5000.
How will my repayments be calculated?
Your debt management company will work with you to calculate how much you can reasonably afford to pay your creditors. They will then negotiate with your creditors to reach an agreement. You will then make a single monthly repayment to your debt management company who will manage the distribution of payments to your creditors on your behalf.
How quickly can my Debt Management agreement be set up?
This can be set up quickly depending on your situation. Please take our Debt Test or contact us so we may assess if a debt management program is the most suitable solution for you.
What fees will be charged by the debt management company?
Many debt management company fees are the 1st month's payment contribution to set up the arrangement and generally 17.5% of the ongoing monthly payment will be retained to cover costs. However, this may well differ depending on the debt management company you opt to use. Debt management companies may make other charges such as to manage a bank account on your behalf. Your debt management company will discuss this with you. Please ensure you are well aware of any extra fees before agreeing to the debt management plan suggested. For free, professional and impartial advice on how to manage your debts, contact us today.