Debt Management

Debt Management is a widely used method of reducing your unsecured debt repayments down to a realistic sustainable level through informal negotiations with your creditors.

It is often used when people can not apply for an IVA and Bankruptcy is not suitable option and some home owners use this option when it has not been realistically possible to financially restructure the debt through a loan or remortgage.

Based on a detailed assessment of your income, expenditure and your personal circumstances your disposable income will be offered to your creditors on a pro-rata basis and you can tackle this yourself with some free help from a charity or as many people do instruct an independent expert to negotiate on your behalf.

Independent companies normally charge fees for Debt Management however they usually will take care of all administration and post, pay your creditors on time each month, keep track of who has been paid what and when, carry out reviews which can often be at 3 or 6 months and provide support often 6 or even 7 days a week.

In Debt Management you will make just one monthly payment and payments to your creditors are made on your behalf. contact us

Whilst the majority of creditors do cooperate once they are satisfied you are genuine and their help is needed these agreements are informal and on this basis there is normally no guarantee that interest rates charges or legal action would be permanently stopped.

Bearing this in mind debts can increase and with lower payments it will take longer to repay the debts so it is essential to try and quickly gain cooperation from your creditors and review the situation regularly with a view to considering other options if necessary.

It is likely entering into this type of scheme will affect your credit rating and please follow the link for further details.