What is a debt management plan?

A Debt Management Plan is an informal arrangement between you and the companies that you owe money. A debt management plan enables you to pay back your debts to your creditors on a reduced amount based on affordability over a mutually agreed period of time.

 

Typically the interest on these debts will be frozen and all legal action and collection procedures stopped. With a debt management plan, you only pay one affordable payment every month to a debt management company who in return makes a distribution to all your creditors.

What are the benefits of a debt management plan?

• It can be arranged very quickly

• You don’t have to pledge any of your assets

• You only make one affordable payment per month to cover all your creditors

• Typically the interest on your debts are frozen

• Avoid debt collector and creditor hassle

• You will still be able to afford your regular bills

• Avoid CCJ’s on your credit score

• You repay your debts over an agreed period of time

• A debt management plan is flexible and can be adapted in the future

What are the benefits of our debt management plan:

• You can start a full application today, no web tests, enquiry calls or referrals.

• It only takes 15 minutes to complete online.

• We can be in touch with your creditors in as little as three days.

• Your debt management plan is 100 % online, and gives you many flexible options.

• We can help with other debts (mortgage arrears, council tax, secured loans etc)

• Our debt plan fee structure is fixed and not based on the amount of your debt.'

• Our Debt Plan is comprehensive and the lowest cost in the UK. (Compare us)

• We are reputable, regulated and operate a Customer Charter.

• Were always available, online or via our contact centre.

How do you know if a debt management plan is right for you?

• You must have at least three creditors you owe money to
• You must be employed or self employed
• The total combined value of your debts must be under £40,000

Although the criteria above are not exact, we still will advise you of the best option for you , our advice is free !

What other debt options are available:

 

Individual Voluntary Arrangements (IVA)

 

An IVA is a good option for individuals with a significant amount of debt who want to formally agree their debt repayment,we don't market IVA's because :

• It costs about £5,000 in legal fees to set one up ( They deduct this from your payment every month )

• You pledge the equity in your property

• It has to be agreed in court

• It costs thousands to change

• It can take some time to arrange

• Our debt programme is designed to assists users with less that £40,000 worth of debt

If you think that an IVA may be suitable option for you, call us for all the facts and we can refer you to a fee free charity that can help you with the arranging one.

 

Personal Bankruptcy

 

We only ever see bankruptcy and this as the very last option, contact us to discuss your situation. Chances are we may be able to help or even just give you information about becoming bankrupt. As with IVA's we don't offer a insolvency service.

 

Have a look a typical debt management applicant and an example debt plan

Visit our Debt management example page >>

 

Have a look at our debt management frequently asked questions for more detail

Visit our Debt management FAQ's >>

 

 

 

Feel free to call us on 0191 454 0226 for a confidential discussion or send us a quick email.