What is Debt Management?

Debt management is an informal agreement with your creditors, which allows you to make one affordable payment into a plan, built to manage your debts. In essence, the payment made into the plan is shared equally amongst your creditors, which is accepted on the basis that it is the maximum you can afford to payback, per month.

To qualify for debt management, your plan provider will need to prove to your creditors that you are suffering from financial difficulties and are unable to cohere to their original terms. It is then possible for your plan provider to request that any further interest and charges are frozen, preventing further debt accumulation.

Although this type of arrangement is not guaranteed, they are widely accepted as one of the most effective ways to manage your debt.
 

What are the benefits of Debt Management?
 
Debt management offers a number of benefits, some of which include:

• A debt management plan can get you out of debt faster, than if you were to tackle the problem alone. 
• If the plan is accepted, many creditors will agree to freeze any further interest and charges, hence reducing your overall debt.
• A debt management plan is not a loan and therefore does not require any further forms of credit to be acquired.
• The plan will put a stop to any further creditor letters and phone calls, providing peace of mind.

If you have any other questions regarding debt management, simply submit your details overleaf. We’re happy to offer as much help as we can.