What is Debt Management?
Debt Management is a system which decides how much an individual or family can afford to pay their creditors each month Debts are consolidated into one affordable payment. This payment is then sent to the creditors once an agreement has been made. The Plan can vary in length depending upon the amount of debts and the re-payment amount. Interest is normally reduced or frozen during the plan.
Creditors cannot pressurise people into selling property or to raise funds by further borrowing.
How does a Debt Management Plan Work?
We take into account the most important aspects of your budget - this means items such as mortgage, rent, food and other household bills.
These payments are taken from your income leaving you with what we call a disposable income. This will be an affordable and realistic amount that you have left to pay your creditors with.
You would then make monthly payments of one single amount based upon this disposable income that we would distribute between your creditors on a pro rata basis.
Payments are made until the balances owed are paid or until you are able to cope yourself.
Will The Payment Remain The Same Throughout The Debt Management Plan?
The monthly payment is based on your financial circumstances. If your circumstances change, the Debt Solution will change to suit your outgoings.
The Creditors Are Threatening Me With Court Action, What Can I Do?
There are many situations when creditors "state" they will take further action. It is important that you contact us as soon as possible to discuss the options available.
We can help you even when a CCJ has been registered against you.
What Happens if A Creditor Contacts Me?
Simply advise them we are dealing with your finances on your behalf. Forward any relevant correspondence to us. Letters and phone calls normally cease once your payment plan has been accepted.
How Will I Know My Creditors Are Being Paid?
You will receive a statement of your account which will be sent on a monthly basis. This statement will show all monies received from you and how much each creditor is receiving on your behalf. Furthermore, you will normally continue to receive statements from your creditors.
How Many Creditors do You Work With?
We have established and developed working relationships with financial, collection agents and Banks. Many creditors refer back to the same collection agents or use certain collection agents on a regular basis. We deal with these collection agents on a day - to - day basis.
What Are Your Debt Management Fees?
You can see our Debt Management Fees and an example of a Debt Management Plan on our Important Information page
How Do I Apply For Debt Management?
Call us on 0800 389 6339 or Apply Online.