Debt Management
A Debt Management Plan is one type of arrangement that can prevent people with serious levels of debt from losing their homes, possessions, and indeed from losing face.
Debt management companies negotiate on your behalf with your creditors, asking them to be realistic about what they can expect back and then set up a single payment plan based on what you can afford to repay after deducting your living expenses.
Here's a summary of the pros and cons of debt management:
Advantages of a Debt Management Plan (DMP)
- These plans are tailored to you individually and offer an affordable solution to debt management
- All correspondence with your creditors can be dealt with by your Debt Manager, saving you the hassle
- They offer advice on how to organize your finances and budget effectively
- They can offer the possibility of the interest charged by your creditor being frozen which reduces the amount you must payback
Disadvantages of a DMP
- Due to the informal nature of the agreement your creditors can back out at any time
- Although it is an option that can be pushed for, creditors cannot be forced to freeze the interest
- DMPs and reduced monthly payments mean a long term financial commitment to the full repayment of your debts
Speak to someone about Debt Management
If you think that one of the above options might be right for you, you can get a call-back and no-obligation advice by phone, using our confidential debt management enquiry service. All enquiries are handled by a qualified, independent debt management expert.
Click here to get advice on Debt Management