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.