Debt Management
Debt Management allows to to consolidate your debts to lower monthly repayments without having to borrow again or put your home at risk with a secured loan.
What is Debt Management ?
Debt management is an informal arrangement between you and your creditors, negotiated by a Debt Management company on your behalf. We take details of your debts, income and outgoings. This is called a financial statements. We present this to your creditors as evidence that you are unable afford current payment levels.
You make one affordable payment to us, which we distribute to your creditors. Typically, new payments are half your existing payments, but will depend upon individual circumstances.
Debt Management Key Benefits.
Also know as an informal agreement or structured repayment plan , the key benefit of debt management are as follows:-- Lower Affordable Payments.
What is need to pay is based on what you can afford, not how much you owe.
This is the law, creditors can't ask you for more than you can realistically afford after taking into account all your essential living expenses. - Just one monthly or Weekly Payment.
You make payment to us, we pay your creditors. You can pay from £25 per week or £100 per month to cover all your debts, if this all you can afford. - No Need for you to deal with your creditors or debt collection agencies.
You can forward any letters and refer any phone calls to ourselves. We'll deal with it. - Flexibility.
If your circumstances change, you may lower or raise your payments accordingly or decide you no longer need our services. - No more late payment charges.
We may be able to arrange to have your payments reduced and future interest charges lowered - or even frozen. - The value of any of your assets is not a consideration.
Acceptance onto a debt management programme depends on being able to afford at least £100 per month towards your debts. It does not matter if you have more equity in your property than your debts, or drive around in an expensive car.
Debt Management Examples
Our database of real debt managament case studies shows how debt management helps people with wide range of financial and personal circumstances.
View Debt Management Case Studies »
CSA payments make creditor repayments unaffordable.
| Debt: £28,000 | Was paying: £850/month |
| Now paying: £400/month | |
| Client has an income £1480 per month, and was able to manage repayments on debts of £28,000 while living with his partner and child. The relationship broke down and the client was still able to afford repayments until CSA demanded over a 3rd of his income. Now unable to keep up with the repayments, debt management is the only option. An IVA is not possible as he has only 2 creditors. He is not a homeowner so can't get an unsecured consolidation loan for such a large amount.
static link to this case study: DMCaseStudy15.asp |
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Debt Management FAQ
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