What is a Debt Management Plan?

A Debt Management Plan is an informal arrangement between you and your creditors to repay your debts over a longer period of time and at a reduced interest rate. It is highly effective for those who are struggling to make their repayments on their debts each month. It consolidates all your payments into one single monthly repayment, so instead of setting up multiple direct debit and standing orders, you just have one. The Debt Management Company will work for you on your behalf and take away the stress of dealing with all your creditors for you, giving you peace of mind.

What is the process?
A professional debt advisor will go through a financial statement with you. This involves your income, expenditure and creditor details and from this they can then calculate your disposable income. Once they have done this they will work with you to establish a comfortable monthly repayment figure for all your debts. The company will then contact all your creditors for you, set new arrangements in place and all that is left for you to do is make one lower, affordable monthly repayment. Click here to see the full process.

Click here to see if you qualify for Debt Management

How long does it take to setup?
A Debt Management Plan can be setup in a matter of hours. This can be beneficial if you are receiving a high number of harassing calls and letters from your creditors as the Debt Management Company can intervene and begin working on your behalf immediately. They will contact each of your creditors and give instructions to forward any further correspondence to them and not to you, reducing the stress of trying to deal with the creditors yourself.

Are interest and charges frozen?
The Debt Management Companies we recommend have long standing relationships with most creditors allowing them, in the majority of cases, to freeze or substantially reduce interest and charges allowing you to repay your debts quicker.

How long will it take me to get out of debt?
This depends on a few factors, the two main ones being how much you owe and how much you can afford to repay. Once he professional debt advisor has all your information they can better assess your situation and estimate the timescales of your Debt Management Plan for you.

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How to find the right Debt Management Company

There are litterally thousands of Debt Management Companies out there, selecting the right one can be difficult and stressful task. We only work with companies who are registered with Debt Management associations. All the companies we recommend are registered with the Office of Fair Trading and/or DEMSA and the Debt Resolution Forum. This gives you piece of mind that your finances are being handled correctly and in your best interests.

Do I Qualify for a Debt Management Plan?
See if you qualify for Debt Management with our Free Online Calculator and we will find the right company to help you back on your feet with your finances.