Debt Management
What is Debt Management?
- Debt management is a great, non-legally binding way of paying off debts on your credit cards, loans, store cards or catalogues.
- A debt management plan will allow you to pay off what you can afford to each month.
Is Debt Management Right for Me?
- It may be the right choice for you if you have debts of £5,000 or more, three or more creditors and at least £100 monthly disposable income.
- You may be unable to qualify for an IVA if your debts are below £12,000.
- If you have unsecured debts that you cannot afford to repay.
- You want a discreet method of debt repayment.
How Does Debt Management Work?
- A debt budgeting calculator will allow you to assess your monthly disposable income.
- With at least £100 monthly disposable income, you can calculate a debt repayment schedule with a debt management company.
- A debt management company can then contact your creditors and negotiate lower payments for you.
- All correspondence can be handled from the debt management company on your behalf.
- If this point is reached, you will only have to make a monthly payment to the debt management company who will take care of everything else.
What are the Benefits of Debt Management?
- You don’t need to contact your creditors.
- Instead of making several payments, you’ll only need to make one.
- Payment is made to the debt management organisation, which redistributes the money fairly amongst your creditors.
- A debt management plan will result in you not having to draft and send letters to your creditors.
- Interest and charges are usually stopped if the plan is carried out to the agreed terms.
- You only need to pay what you can afford to make available.
- Debt management plans have no legally binding nature.
What are the Disadvantages of Debt Management?
- Your creditors are not obliged to accept your offer of a debt management plan.
- The lack of a legally binding agreement can result in creditors changing their stance on the debt.
- The more affordable level of repayment may result in a much longer repayment period.
- Your credit rating could be affected.
When Can I Get Debt Management Advice?
- You can call the debt management helpline any time; 24 hours a day, 7 days a week, 365 days a year.
How Can I Contact a Debt Helpline?
- Freephone: 0800 074 6918
- Email: info@e-insolvency.co.uk
