Typically debt management is suited to those with fairly low levels of debt. It offers a short term solution for people needing some time to get back on their feet or those struggling to manage their debt appropriately.
Unlike an IVA it does not involve a legally binding contract. It is an informal Agreement that will be arranged on your behalf with your creditors to reduce your monthly payments.
Normally you are still obliged to pay your debt in full, so reducing your monthly payments may increase the length of the repayment. The reduction in your expenditure, however, should help you take better control of your finances.
There is no guarantee that the interest and charges will be stopped therefore your debt may continue to increase. However, a debt management company should act on your behalf to negotiate this as well as making sure that you do not receive direct demands for payment.
Debt Management - Pros and Cons
- It is an informal Agreement with your creditors, suited for low levels of debt
- A debt management company will negotiate on your behalf for reduced payments
- You only make one monthly payment
- Interest and charges may still apply to your debt, though we strive to get these stopped and will advise you if we are unsuccesful
- Creditors are not legally bound so can still take action against you should they wish
Key information and fees
We are committed to providing the very best customer service at competitive rates. Please Click Here for more information on our fees and key facts.
You can also view a free publication from The Insolvency Service 'In Debt? Dealing With Your Creditors' which provides an overview of some of the debt solutions that may be available.
Debt Management Plan T&C's
Call our specialist debt team on 08000 915 004 to find out how we could help you.