Debt Management
What is Debt Management?
Debt Management is the process of putting arrangements in place with your creditors by demonstrating why you cannot afford to maintain your repayments at the rate that was agreed when you took out the credit. We concentrate on getting the interest and charges stopped as quickly as possible so the payments come off the balance and the debts come down as quickly as possible.
We deal with the creditors directly so you don’t have to – removing any stress brought about by calls and letters. Our creditor liaison department will monitor your account making sure that everything runs smoothly and will liaise with your creditors if any queries or issues arise.
How Debt Management Works
During an informal chat with a debt advisor, you will run over your income and expenditure which will take around twenty minutes.
We will then be able to determine how much you can realistically afford to offer each of your creditors on a monthly basis.
Our creditor liaison department will then contact your creditors and make them aware that we are working on your behalf and that you are on a debt management plan. We will make offers of repayment and get the arrangements in place. If there is any bailiff action or court action underway, we will take this over working on your behalf to make sure that your best interests are protected.
You then make one monthly payment to us and we distribute the individual payments to your creditors.
While on the debt management plan you have access to your debt advisor, the creditor liaison department and the accounts department. If you have any questions or need any further advice you will be able to speak with the right people.
On a regular basis we review your debt management plan with yourself making sure that you are comfortable with your payments. We also conduct regular reviews with your creditors.
You can stay on the debt management plan for as long or as short a time that suits your financial situation and there is no contract or penalties on leaving. We find that the majority of our clients leave as they either complete the debt management plan or are able to settle the debts early.
. You can always move forward from a debt management plan onto an IVA. Although it can be done, it is harder to move from an IVA to debt management.
Advantages of a debt management plan
- You will be able to pay your creditors at a rate that you can afford
- Frozen or highly reduced interest so your payments come off the balances
- We deal with your creditors so you don’t have to
- No need for any further borrowing
- Trained advisors that have years of experience
- You can reduce or increase your payment at any time
