How Debt Management Works

There are no fees for advice normally, no charges for initiating or administering a plan and you don’t have to pay a so-called "deposit". 100% of your monthly payment goes towards reducing your debts.

Arranging a Debt Management Plan:

  1. A full assessment of your financial situation is carried out.
  2. By collating this information into a Financial Statement, debt management teams are then able to determine how much you can realistically afford to offer each of your creditors.
  3. Your creditors will then be approached and asked to accept the reduced payments. In most cases creditors are happy to agree the plans initiated because they know, from experience, that such plans are realistic and sustainable.
  4. You then make a single monthly payment, all of which is distributed pro rata to your creditors. Every penny of your monthly payment goes to reducing your debts.
  5. Throughout the duration of your plan, you will have an assigned case officer whom you can contact should you experience any difficulties whilst the arrangement is in place.
  6. Your plan will be reviewed at regular intervals to ensure that it still meets your circumstances.
  7. The plan will continue until your debts are cleared or until you wish to voluntarily end the arrangement. Most common reason for this being an improvement in income enabling a client to leave the plan and revert to their original monthly payments.



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