Debt Management Plan FAQs
When your debts are getting larger rather than smaller, thanks to being unable to meet repayments, it's time to take stock of the situation and find a practical solution. Debt Management Plans are on such way of making debt repayments manageable.
What type of debts can be handled with a Debt Management Plan?
Debt Management Plans can only be used to pay unsecured debts, such as credit cards or personal loans; debts that haven't been guaranteed against your property.
How do I qualify for a Debt Management Plan?
A Debt Management Plan is an informal agreement made between you and your lenders. Lenders are likely to agree to a Debt Management Plan if:
- Your unsecured debt repayments are more than you can afford
- You can still afford to make regular monthly repayments
- The debt can be paid off within a reasonable period of time
There's no way of knowing for sure if your creditors will accept the terms of the Debt Management Plan, but if you are struggling to keep up or are missing repayments currently they are likely to accept in order to ensure that the debt is repaid. Regular and affordable payments are in everyone's best interests.
How long will my Debt Management Plan last?
The length of the plan depends on your individual circumstances, particularly your level of debt and ability to pay. As part of the Debt Management Plan our expert partners will try to get creditors to freeze interest and charges on the debt, and this can greatly reduce the amount of time needed to execute the plan successfully and leave you debt-free.
Can I stop a Debt Management Plan?
You can halt a Debt Management Plan at any point, but we ask that you provide notice so our partners can inform your creditors. Once a plan is cancelled creditors can resume interest and charges on the debt if they have been frozen as part of the plan.
If your financial circumstances change dramatically inform our partners as they may be able to restructure the Debt Management Plan to suit your new circumstances. This could include increasing or decreasing monthly repayment amounts.
Advantages of Debt Management Plans
- Combine all unsecured debts into a manageable monthly payment
- Potentially reduce or freeze interest and charges on the debt
- Reduce correspondence with lenders
For more information regarding a Debt Management Plan, call us now on 0808 163 9579 to speak to an advisor or complete the form below.
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