It is important that you have all the facts before entering any debt solution.
Here are some of the key aspects to bear in mind when looking at a Debt Management Plan.
Benefits
- One payment to cover all of your debts
- Professional representation from your own personal account manager
- Reduced repayments so your debts are repaid at an affordable rate
- Relieves the pressure of dealing with multiple creditors and payment dates
- In most cases interest and charges can be frozen
- You can make your payments weekly, two weekly, 4 weekly or monthly.
- Dramatically reduces creditor pressure and contact
- You do not have to be in full time employment to be eligible
- Negotiate reduced payment arrangements even if your accounts have defaulted or if you have a County Court Judgement (CCJ).
- Complete any necessary court paper work.
Disadvantages
- Your credit rating will be affected
- Your accounts may default
- It will take you longer to pay off your debts
- Your creditors do not have to accept reduced payment arrangements
- Your creditors will still have to issue some letters under the Consumer Credit Act
- Secured debts cannot be dealt with under a Debt Management Plan
We cannot guarantee resolution in respect of County Court Judgement and Bailiff’s, although we do have a wealth of experience in this area.
If you require any additional information, simply contact one of our dedicated customer services team on 0800 072 6623 or by email.