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Debt Management Plans

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Take Control of Your Debt With a Debt Management Plan


A debt management plan is a commonly used debt solution which would involve a thorough analysis of your monthly expenditure and income, in order to determine how much you can afford to pay toward your total creditor debt each month. The debt management plan can be devised by either yourself or collaboratively with a financial expert, who will go through your financial documents- both income related and expenditure based- and ascertain the maximum amount you can afford to pay toward your total creditor debt each month, without drastically effecting your standard of living. The value of this calculated sum will then be forwarded as a modified repayment arrangement offer to your creditor (s), who will then decide whether they are happy to allow you to enter onto a new repayment schedule that will see you pay a single, reduced sum each month until that time that your financial situation recovers. During your proposal, you will have to produce documents that clearly illustrate your inability to adhere to your current repayment schedule, and other pieces of evidence that display that your income is unable to cope with the financial burden of your creditor debt at present.


Your creditor (s) will then assess the reduced payment offer, and if accepted, you will then be moved onto the new payment schedule straight away, with interest and late charges usually frozen. If you opted to use the services of a finance specialist to devise and process your application, then they will collect your monthly payment each month and divide it up amongst your creditors, whilst simultaneously advising you about measures to avoid relapsing into debt again.

If you are interested in entering onto a debt management plan, would like specialist debt advice forming one and making an offer to your creditors, or simply have an enquiry about the procedure, contact us today and we’ll be happy to address all questions that you may have.





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Individual Voluntary Arrangement


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Debt Consolidation


Consolidating your debts may make them more manageable for you as the entirety of your unsecured loan repayments can be amalgamated into a single monthly sum. Discover how we can help you with debt consolidation.

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Bankruptcy


Bankruptcy can be a quick solution to tackle your debt, and whilst it is not suited to everyone it can nevertheless prevent you from spending years of your life trying to clear your debt.

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Customer service

We have a staunch company policy of high quality customer service and as such will always be just a phone call away throughout the course of your debt solution if you ever require any help or advice.


Finance experts

All of our members of staff have worked in the finance industry for a number of years now and as such will analyse your financial situation and produce a number of custom solutions to your debt that reflect your circumstances the best.

Devoted aftercare

If you complete your debt solution successfully, we will retain contact with you in order to make sure that you are carrying on your upward trajectory with your money management.


Harassment Protection

Once you seek our help, we will take over all interaction with your creditor’s and work hard to ensure that they cannot harass you by letter, email or telephone anymore, so you can concentrate on tackling your debt.


Creditor protection

One you enter onto your debt management plan, your creditors should be rendered unable to harass you via letter and relentless phone calls chasing up late payment should come to an end.


Single, reduced monthly payment

A debt management plan involves yourself making a single, affordable payment to address all your creditor debt each month, and depending of your circumstances, you could reduce the overall size of your debt by 70%.


Legal protection

If you come to an arrangement with your creditor about starting a debt management plan, then you may be able to have county court judgements currently being pursued against you suspended.


Flexibility

If your offer to begin a debt management plan is accepted by your creditors, then you will be able to decide when you are financially capable of making larger payments again, granting you a huge degree of flexibility with your debt repayment.


Debt Advice Request

Stop Creditors Chasing You!

    We’ll handle interaction with all of your unsecured creditors on your behalf and negotiate with them in order to try and attain the best possible revised repayment arrangement for your debt. Furthermore, our altruistic financial advisors will serve as the sole point of contact between yourself and your creditors throughout the creation, implementation and course of your chosen debt solution in order to protect you from the harassment often exhibited by aggressive creditors. Contact us today and start the process of tackling your debt problems head on today.


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  • How It Works
  • The Advantages
  • The Disadadvantages
  • Is it right for me?

A debt management plan is a hugely popular debt solution which is utilised by individuals in debt in order to attain a greater idea of where they stand financially and how much they can afford to pay each month toward their debt. Essentially, the solution involves a debtor gathering a comprehensive set of information about how much they spend each month on all the essential areas of living, such as on housing, food, utilities and travel, and matching this total value against the amount of income they receive each month. Using this information, the debtor will then have to identify how much disposable income they have each month to realistically contribute towards their loan repayment, after subtracting the costs of expenditure on living essentials.

This offer, including financial documents to support why it is being made, is then made to the creditor (s), who can decide whether they are happy to reduce your monthly repayments to the value of the offer. If accepted, then interest and late charges will usually be frozen on all debts included within the plan, and the lump sum monthly repayment will be divided up and distributed to all relevant creditors until that time that you either pay in full or return to your original payment arrangement. If you use the services of a finance expert, then they will help you determine how much you can afford by analysing your financial documents carefully, and will then process your application to your creditors. If accepted, they will be in charge of obtaining your monthly payment from you, then reallocating it amongst your creditors, and will ensure that you take the right steps whilst on the plan so that you do not relapse into such financial difficulties again.

  • All creditor debts included in the plan are repaid collectively through a single payment each month, so you don’t have to worry about late charges and interest building up.
  • The monthly repayment will be calculated by analysing how much you can realistically be able to afford, meaning you can address your debt in a relaxed and comfortable manner.
  • If you utilise the services of one of our finance specialists, then negotiations with your lenders will be undertaken entirely by us, so we can try and establish the optimum agreement for your circumstances.
  • You attain a greater idea of where you stand financially, through the meticulous assessment of your monthly expenditure and income, and will be able to produce a budget which will help to prevent you falling back into further debt into the future.
  • As a debt management plan is fundamentally a reduced repayment solution, it will likely have a negative impact on your credit rating, which might affect your future ability to acquire credit.
  • You’ll be required to keep your levels of expenditure in adherence with the specified amount in your plan, otherwise you risk having too little money to contribute toward your loan repayment.
  • Your creditors are not legally obligated to accept the offer of a debt management plan, though in many cases they will in order to receive some form of payment.

If you are currently struggling financially, and have a number of creditor debts, then a debt management plan could be a hugely helpful device to use in order to lower the strain on your finances each month, and attain time in order to retrieve your situation and return to financial stability. Even if you only have one creditor debt, a debt management plan can clearly identify to you how much you spend each month, how much you earn, and how much you can actually afford to pay towards your debt, which is hugely useful as you can form a budget to stick to from this vital information. Moreover, you can combine all of your unsecured debt into a single, monthly payment which is determined in accordance to how much you can realistically afford to pay. As such, a debt management plan is a great way of tackling debt for anyone who has a number of debts, and believe they are undergoing short term financial difficulties, as the plan provides a means to alleviate that burden until that time they recover.

However, if you have very little disposable income available to you each month, are unemployed, or do not enjoy being rigidly bound to an expenditure plan each month, then a different option may be better suited to you, because you will be required to choose a repayment offer sum and stick to it when the plan is accepted. Moreover, it should be kept in mind that creditors are under no legal obligation to accept the plan, so you will have to keep your options open even during the application process.