What is a debt management strategy?
A Debt Management Plan is an informal arrangement between you and the organizations that you owe income. A debt management program enables you to pay back your debts to your creditors on a reduced quantity, based on affordability over a mutually agreed period of time.
The interest on these debts may be frozen and all legal action and collection procedures stopped. With a debt management plan, you only pay 1 cost-effective payment each and every month to a debt management firm who in return makes a distribution to all your creditors.
What are the positive aspects of a debt management plan?
It can be arranged extremely rapidly
You don’t have to pledge any of your assets
You only make 1 cost-effective payment per month to cover all your creditors
Normally the interest on your debts are frozen
Stay away from debt collector and creditor hassle
You will still be able to afford your regular bills
You repay your debts over an agreed period of time
A debt management strategy is flexible and can be adapted in the future
You will not be tired into any debt management plan What are the advantages of our debt management program?
You can start a full application these days, 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 program is 100% on the internet and gives you many flexible alternatives
Our debt plan fee structure is fixed and not based on the amount of your debt
We are reputable, regulated and operate a Customer Charter
Were constantly available, on-line or via our contact centre
We have 1 of the lowest fee structure around Our team has over 20 years expertise in debt management How do you know if a debt management strategy is right for you? You should have at a lot more than 1 creditor you owe cash to You need to be receiving an income You are struggling to meet your monthly payments
Still unsure about going ahead with a debt management program? Give us a call, we can advise you of the finest alternative for you- our assistance is totally free!
Other debt possibilities obtainable:
Individual Voluntary Arrangements (IVA)
An IVA is an alternative to bankruptcy and was introduced in the insolvency Act 1986. It permits an individual who has debts to make a proposal to their unsecured creditors to reach a settlement. If the proposal by over 75% of the unsecured creditors who vote the IVA is legally binding on all the unsecured creditors, with a couple of exceptions, which includes those that did not vote and prevents any further action becoming taken.
Generally the costs of an IVA are less than bankruptcy and normally offer a much better return to the unsecured creditors.
It is usual for the payment to unsecured creditors to be on deferred terms and for less than the full amount of the debt. Even although the debt might not be paid in full, as soon as the IVA is complete the unsecured creditors who are included inside the IVA can not chase for the remaining balance.
The majority of IVAs are based on 60 monthly contributions but can also incorporate a lump sum for example from releasing the individual’s share in a property, life of endowment polices.
The monthly Payments produced into the IVA will cover the fees for putting together the proposal and also supervising the IVA as well as creating payments to the creditors.
During the period of the approved IVA the unsecured creditors are required to freeze all interest on the debts, they are prevented from pursuing the debts and also prevented from progressing legal action in relation to those debts except with the consent of the court.