Debt Management
Debt Management
Debt management is an informal arrangement with your creditors to reduce your monthly outgoings and bring your unsecured credit debt under control.
Debt management arrangements are generally suitable for those with unsecured debts of less than £15,000 with low monthly disposable income. Disposable income is calculated by removing the monthly amounts you would pay into the debt management plan including credit card and unsecured loan payments. To calculate your disposable income you should add up your essential monthly outgoings such as mortgage payments, food, bills, secured loans etc and deduct this from your take home pay. This would give a figure you could distribute to your creditors in a debt management arrangement.
Debt management programs are not highly regulated and creditors can still make an individual bankrupt even if they do not default on agreed payments.
To see whether your situation is suited to a debt management program please complete our short form to the reight.
A more formal debt management arrangement is an IVA which is generally more suited for those with more than £15,000 unsecured debt and higher disposable income. You can find more information on an IVA here or complete our enquiry form so we may assess your debt situation.
We will always advise you on the most appropriate solution to your needs and your information will be dealt with in the strictest confidence. If you are suffering debt problems it is important that you seek advice at the earliest possible opportunity. Please Contact Us Now for free, independant advice on your debt problems.
Debt Management Companies and Debt Management Service providers will negotiate with outstanding creditors in order to reduce monthly payments on unsecured debts to an affordable level.
How does it work?
You pay a monthly sum to the debt management company, an amount that they determine you can afford, based on your income and out goings. From this payment they take their fees and then pay percentages to your creditors included in the program.
In general, depending on your individual circumstances and level of debt, we believe that a debt management program is an option worth considering when debts are below the £15,000 level. However if your unsecured debt is over £15,000 then an IVA should be seriously considered.
In order to determine whether your circumstances are more appropriate to an IVA or debt management program, please Contact Us so that we can assess your financial situation and advise on your best possible debt solution.