How does a Debt Management Plan work?
A Debt Management Plan is an agreement reached with creditors to pay outstanding unsecured debts such as personal loans and credit cards. If you're struggling to keep up with debt repayments and the cost of living, this type of plan can help make the repayments more manageable over the long term.
Manageable monthly payments
In order to draw up a Debt Management Plan you will need to disclose details of your financial situation, which typically includes assets, debts, income and creditors.
Once this information is considered by our trusted partners we can create a Debt Management Plan based on your ability to pay. This usually means lower payments over a longer period of time, and our expert partners often negotiate the freezing of interest and charges on the debt until it is cleared.
Once the plan has been created we approach your creditors to get their approval. Creditors don't have to agree, but if you are struggling to meet or missing existing repayments they are likely to agree in order to ensure the debts are repaid.
If the Debt Management Plan is approved by creditors you can begin making regular payments to us, which we will distribute between your creditors.
Talk to our partners today about your circumstances
The best Debt Management Plan for you depends on your individual circumstances, so talk to one of our trusted expert partners about your financial situation in order to establish the ideal Debt Management Plan solution. Repayments should be comfortably manageable in order to ensure the Debt Management Plan is successful.
If you don't keep up with repayments the Debt Management Plan can be cancelled and creditors will attempt to recover the debts from you again.
If your debts are significant an Individual Voluntary Arrangement or even brankruptcy could be preferable. Our expert partners will help you to find the ideal debt solution.
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.
Complete this form and we'll find the right option for you