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Debt Management Plans
What is a Debt Management Plan?
A Debt Management Plan is an informal agreement between yourself and your creditors and is
facilatated by a Debt Management Company.Once set up, the Debt Management Company deals with all correspondence between you and
your creditors. So any demanding letters you receive, you just pass on to the Debt Management Company and they
deal with your creditors.
However, because a Debt Management Plan is not a legally binding contract,you must keep
up the payments or your creditors will come after you for the whole amount you owe.
The first thing we do is to
look at your income and expenditure and calculate with you, what you can afford to repay as a monthly payment, to all your
creditors. You make one monthly payment to us and we divide the payment pro-rata to all your creditors.
Example
You owe company A - £2,000
B - £3,000
C - £4,000
D - £5,000
The total amount you owe is £14,000, therefore the following applies:-
Company A will
receive 2/14
B will receive
3/14
C will receive 4/14
D will receive 5/14
So if you had agreed to pay a monthly some of £280, A = £40, B = £60, C =
£80, D = £100
Debt Management Plan Enquiry Form
Why choose a Debt Management Plan?
There are certain advantages to a Debt Management Plan.
It is a more affordable solution to your current financial needs.
Because it is more affordable, your stress levels
will be reduced and you will have more peace of mind.
Any letters that you receive from your creditors will be dealt
with by us.
In many cases the interest rates you are currently paying can be frozen.
You can repay your dents without
the need for a loan.
What are the disadvantages of a Debt Management Plan?
There are
certain things you need to be aware of before entering into a Debt Management Plan.
A Debt Management Plan can adversely
affect you credit rating.
You will be repaying all your debts over a longer period and this may increase the amount you
have to pay back.
A Debt Management Plan can only deal with debt such as:-credit cards, store cards, catalogues, unsecured
credit etc and you cannot include mortgages, secured loans or utility bills.
There are fees attached to a Debt Management
Plan, which we charge to manage your debt.
Private and Confidential
We get asked all
the time, "will anyone find out about my debt management plan?" or "will it be in the local paper?"
We can absolutely assure you that everything is done in the strictest confidence and the only people that will know about
it are your creditors, ourselves and you!
Click this link to apply for a Debt Management Plan.
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