What is Debt Management?

Debt Management is an option available for people with high outgoings who are struggling to manage their repayments and can't get a loan to consolidate these. By utilising a debt management scheme you are able to cut your monthly outgoings by up to half and only make realistic repayments. Your payment will be calculated based on your left over income after all of your essential living expenses have been taken out ensuring that you only pay back what you can afford.

Your debt management service provider will ensure your payment is distributed to all of your existing creditors (the companies that you are in debt to) and make sure these payments are managed effectively and kept up to date.

REPAYING DEBT OVER A LONGER PERIOD MAY INCREASE THE TOTAL AMOUNT REPAID. YOUR ABILITY TO OBTAIN CREDIT WILL BE AFFECTED IN THE SHORT TERM AND MIGHT BE AFFECTED IN THE MEDIUM TO LONG TERM. FEES APPLY.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER LOAN SECURED ON IT. THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME.

How will you benefit?

1. Only One Payment
2. You only make one single payment to us which we then distribute to your creditors taking the hassle out of debt repayments.
3. Reduced monthly payments

By consolidating all of your debts via a debt management company you are able reduce your payments to a suitable amount that is both affordable and convenient for you. This payment will be calculated after all of your essential bills have been paid such as rent and food meaning you only repay what you can afford.

1. No hassle from Creditors
2. We deal with any letters or phone calls you receive from creditors meaning you no longer have to deal with them.
3. Flexible Payments
4. You are free to make changes to your monthly payments depending on your personal circumstances – reducing or increasing the payments accordingly
5. Never incur a late payment charge again!
6. Your payments can be reduced or even future interest frozen so there is no need to fall behind on payments.

 

Debt Management Q & A

What will my monthly repayments be?
This varies depending on your personal circumstances. We will negotiate a lower monthly repayment with your creditors to enable you to keep up with the repayments. We will take into consideration your monthly income and essential living expenses in order to calculate a monthly sum that suits you and your creditors. The minimum payment made will be £120 per month.

How long do I need the debt management program for?
The debt management program will be put in place for as long as needed in order to pay off your debts in full. Due to the reduction in the monthly payment amount the repayment period will be increased and you may incur additional interest payments.

What will I receive to show my debts are being paid?
When a monthly repayment amount had been decided you will receive a document detailing what proportion of this amount will go to each creditor. This will remain fixed unless your personal circumstances change. You will receive a document issued quarterly showing exactly what transactions have been made from your account. You will also continue to receive statements from your creditors showing payments that have been made and debt outstanding.

Will a debt management program affect my credit rating?
In some cases entering into a debt management program will break the terms and conditions of your repayment agreement with your lender. This may have an adverse affect on your credit history. When the debt management program is set up you will experience a delay from the time it takes to initiate the program to the time when your first repayment is made. This may result in a missed payment to your creditors in the initial stages.

Can you guarantee to reduce my payments?
Unfortunately payment reductions depend on your personal circumstances and are at the discretion of the creditor. This will be dependent on your ability to make your current repayments.