Debt Management Plan
Put your debts in order with a professional Debt Management Plan
What is Debt Management
A debt management plan in an informal arrangement between yourself and your creditors which will reduce your monthly payments to your creditors making them more affordable and will allow for one simple more affordable monthly payment to be made instead of paying a multitude of payments throughout the month. A debt management plan is typically managed by a 
third party firm who have the ability to negotiate with creditors on your behalf to ensure your monthly payments are affordable and you are not paying more than you can genuinely afford.
How could Debt Management Benefit me?
The exact benefits will vary depending on your circumstances but in general terms people who sign up to a debt management plan will benefit in a number of ways, the main ones being
- Reduced Monthly Payments to creditors
- The debt management company will deal with your creditors for you
- One single manageable monthly payment
- Less stress as your debts are being attended to in a positive way
- Creditors will see you have taken positive steps to resolve your debts
- Additional fees may stop being added to you loans
- Further interest may be frozen
Will I have to take out a loan for debt management?
No. The main purpose of a debt management plan is to enable you to make more manageable payments to your creditors without the need to take out any further borrowing.
Is a debt management plan right for me?
Debt management could be right for you, or you may get better results from consolidating your debts or applying for an IVA or simply altering how you manage your monthly income without altering any payments to creditors at all. In order to ascertain which would be best suited to your needs, after speaking to you and discussing your individual circumstances, requirements, needs and budget - we will make our recommendation, after gathering all the facts you will be able to make an informed decision and should feel more confident about any decisions you make, our aim is to provide you with the most suitable advice, whatever that may be.
Will you treat my details confidentially?
Absolutely, we will never pass your details onto anyone without speaking to you first, if we do ask to pass your details onto a third party, it will be with the sole intention of offering you the best service and solution possible.
Do I qualify for Debt Management?
Everyone's circumstances are different but like most things, debt management does have certain criteria which needs to be met in order to apply.
- Debts over £2,000
- 3 or more creditors
- You be employed, self employed or have a regular income
- Have at least £150 per month to pay your creditors
If you can answer yes to the 4 points above it may be a debt management plan is just what you need. If that is the case we would suggest simply filling in the form at the top of this page and we will call you back.
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How do I know what my disposable income is?
Your disposable income is simply the amount left from your monthly income after household bills and priority debts have been paid. To work this out simply add together your monthly income and subtract your monthly living expenses such as rent / mortgage, food, gas and electric etc. The figure you have left is your disposable monthly income and is theoretically what you can afford to pay your creditors. In order to work this out correctly we would suggest speaking to a professional - we will work out your monthly disposable income the same way as the creditors will to ensure there are no misunderstandings on what is affordable when your creditors are contacted.
What are priority Debts?
Priority debts are those which must be paid before any other debts. For you convenience we have listed below the debts which are generally considered as priority debts.
- Mortgage / secured loan
- Rent arrears
- Council tax / community charge
- Maintenance or child support
- Court fines / magistrates fees
- Hire Purchase agreements
- Telephone
Will a debt management plan effect my credit?
When people look at resolving debt issues by applying for a debt management plan it is usually because they have already missed various payments to their creditors and have had defaults etc registered against them already - if this is the case it is unlikely a debt management plan will effect your credit rating any more than it's already been effected. In the event that no payments have been missed and the debt management plan application is being applied for before payments are missed then your credit may be effected. In order to arrange a debt management plan, it is often the case that the original agreements need to stop in order to set up new payment arrangements with your creditors, this may result in defaults being registered on your credit file. This is not always the case and sometimes no defaults are registered but you should be aware that they may be.
I want to find out if I can apply for a debt management plan
Finding out if you can apply is easy, simply complete the form to the right and we will call you back or contact us on 0845 094 2331.
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