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 »
Most Recent Cast Study:-
£58,000 of debt - but can't do an IVA.
| Debt: £58,000 | Was paying: £1267/month |
| Now paying: £300/month | |
| Client has £200,000 equity in his home & unsecured debts of £58,000.
His assets are more than his debts, but he can't pay 11 creditors from a monthly income of £1,060. An IVA is not possible as his creditors would never agreed to forgive any debt when he could repay them in full by selling his property. The client does not want to remortage as he has recently become self employed and does not want to risk his home if that does not go to plan. Debt management will never pay off this debt, but it gives our client some respite from his creditors while he focuses on building his business without the fear or court action or losing his home. static link to this case study: DMCaseStudy100.asp |
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Debt Management FAQ
Got a question about our debt management service?
View Debt Management FAQ »
1. What if my creditors continue to pursue me for payments ?
In the short term, while your debt repayment plan is being setup, your creditors may continue to take action to recover your debts. Do not ignore them. Deal with calls politely, informing creditors that you have appointed ourselves to act on your behalf. Please forward any letters to us to deal with on your behalf. Generally speaking, creditors are normally synthetic to those in difficulties and doing they up most to maintain reduced payments by using a debt management company.2. One of my Creditor say they are going to send a bailiff round to collect their money, can they do this?
Certainly not. A bailiff can only be instructed and sent by a County Court or Sheriffs office. This means a bailiff can only call if you default on a court order. A debt collector may try to trick you by saying, “if you don’t pay this bill, we could send a bailiff round” this is not true unless you have defaulted on an earlier court order.3. Can you guarantee a reduction in payments ?
No. Stating we can guarantee a reduction in payments is not something we are allowed to do under guidelines issued by the Office of Fair Trading.It depends on your ability to pay and is at the discretion of your creditors. However, once we take a financial statement from your and explain the situation to your creditors, they will almost certainly agreed with our proposal.
Common Misspelling:-
Debt Management Program, Debt Management Programme, Debt Managment, Debt Managemnt, DebtManagement, Debt Management Plan, Debt Managemant, Debt Mangement,