What is Debt Management ?
Debt Management is an informal process of negotiation with unsecured creditors to obtain a reduction in the repayment amount and / or a reduction in interest charges. The negotiation involves providing proof to the creditor that the individual is unable to meet all their contractual liabilities.\
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Debt Management Process
Our main aim and expertise is to help you resolve your current financial problems in the simplest and quickest way possible. In effect getting back to financial health. We do this by using the following process.
Firstly, we ask you to tell us about your credit commitments, income and expenditure. Our experienced team of advisors will work out a monthly payment you can afford. In most cases, it may take longer to repay your debt, we can obtain significant reductions in your monthly payments.
Secondly, we negotiate with your creditors to reduce your existing monthly payments. Your creditors are not obliged to accept reduced payments or freeze interest. Normally, once hardship can be demonstrated, negotiation can improve your circumstances producing a fairer distribution of money between essential living costs and your credit commitments.
Your new single lower monthly payment will replace all of your existing repayments. Each month you will pay to us your new affordable monthly payment. We will then do the rest. We will ensure that all your creditors are paid in an efficient and seamless manner and each month you will receive a statement confirming that all your creditors have been paid.
Thirdly, every six months we will undertake a financial review. This ensures that you can decided to pay back more the less per month per month, depending upon any change in circumstances. Our debt management programmes are flexible and you can contact us at any time to discuss changes in payment.
Advantages of Debt Management
- It’s instant – one call and we can take control of all correspondence for you.
- Flexibility, you can increase or decrease payment as your circumstances change.
- Unlike an IVA, don’t need unsecured debts of £15K or to become involved in a legal insolvency procedure.
- So long as you’ve 2 or more creditors and can affords to make payments of £100 per month, you will be accepted onto a debt management programme.
- Unlike a secured consolidation loan, it will not put your property at risk of repossession