Free Debt Advice

Why choose debt management?

• There are no quick fixes for people with debt problems. People wrongly assume that bankruptcy is an easy way out of debt, but it is not. Bankruptcy has long lasting repercussions and is not something that should be entered into lightly. Also, only the most extreme circumstances call for bankruptcy, most problems can be addressed by debt management or an IVA. If you have problem debts and you are unable to meet the full repayments each month, it is likely that without some assistance you will never be able to repay these debts. The consequences of this can be serious and can include CCJs, reduced credit rating resulting in problems gaining future credit and property seizure from bailiffs. You can do something about your debts now. If you apply for debt management, typically you can be debt free in 36 to 60 months.

What is debt management?

• Debt management can be the easiest and quickest solution to your debt problems. If you take out a debt management plan with us, we will review your financial situation and determine the best repayment scheme available to you. This means, how much you are able to pay over a certain amount of time. We will then act on your behalf to negotiate these repayment terms to every party you owe money to. This means you no longer have to deal with creditors (the people you owe money to), bailiffs or anyone else demanding money. We understand that just being in debt causes enough stress without the situation being made worse by these demands. Right from the beginning we ease this stress by stepping in and taking responsibility for all contact between you and those you owe money to. This means no more calls from the bank, the credit card company, the loan company, the store card, the bailiffs or anyone else asking for money. An agreement based on these negotiations is made between us and your creditors. This will involve freezing your interest rates and arranging a more realistic repayment scheme that takes into account your current financial situation. Your creditors also have to agree not to make any further demands for money from you. At the end of the payment period, any remaining debt is written off. From the very beginning of our negotiations with your creditors we make it clear how much you can afford to repay and for how long. This is the start of your debt management plan and the end of your debt.

You may ask yourself, “Why would a company that I owe money to agree to this? They will lose money?”

• Despite the fact that the companies involved will not recover the entire amount owed, many are willing to agree to a debt management plan. This is because they are guaranteed some of the money back. If they go down other debt recovery routes, there is no such guarantee.

Is a debt management plan right for me?

• A debt management plan is suitable for the average person with debt. A different solution may be required depending on your specific circumstances. This will be discussed with you after you contact us. There are certain criteria that you must meet for debt management to be suitable for you.
  • You are unable to meet your current monthly debt repayments.
  • Your situation is not serious enough for bankruptcy.
  • Every month, you can afford to pay £100 towards your unsecured debt repayments.
  • The amount you owe in unsecured debt is at least £8000 and…
  • This debt is owed to at least three different unsecured creditors.
  If you meet these criteria then a debt management plan may be right for you and you should contact us today. Even if your circumstances differ from those above, get in touch and we will discuss the best options for you. Please note that by unsecured debt, we mean an amount owed that is not secured on an asset that belongs to you. For example leases and some loans are often secured against your home. Therefore these cannot be included in a debt management plan. Other types of debt that are not included are:
  • Secured loans
  • Leases (property)
  • Hire purchase
  • CSA / Maintenance arrears
  • Car loans (if secured against the car)
  • Rent
  • Council Tax arrears
  • Student Loan repayments
  An unsecured creditor is a company that has given you credit services that are not secured against any of your assets, for example a credit card, a store card and certain kinds of loans. Remember, just because a debt management plan may not be suitable for you, it doesn’t mean that you are out of options. We are confident we can help, no matter what your debt problems are.