What are the advantages of a Debt Management Plan?
In the area of debt elimination some people like the idea that they have a contract with the Debt Management Organisation, and believe that they therefore have more control over how their debts are treated:
You will have almost instant access by phone to the Debt Management Organisation and will not have to wait to see someone
some people like the anonymity of a telephone service run by a Debt Management Organisation
You do not have to do any work in relation to your debts, for example, drafting letters to creditors
There is only one payment to make - to the Debt Management Organisation - and the company distributes the money to the creditors.
You do not have to pay several different companies. Instead only one payment.
If the plan is carried out successfully all Interest and charges are usually stopped.
You only pay what you want to so that you have enough left over for a healthy social life.
You will no longer need to speak to your creditors in order for debt elimination to take place
What kind of debts can I include in a debt management plan?
It's very important that you understand what kind of debts you can include in a debt management plan; debts which have underlying security related to them cannot be put into a plan.
You need to remember:
If you bought a car on finance and you have fallen behind in making payments towards your arrangement, your car may be repossessed.
If you fall behind making repayments towards your mortgage or your secured loan, your home can be repossessed.
Basic rules in dealing with debts that cannot be included in a debt management plan:
Contact your creditors as soon as possible, and let them know that you are having financial difficulties. Your creditor may be able to help you by proposing a repayment plan which is easy for you to follow.
When contacting your creditors, if the person you're speaking to does not seem to be helpful or you're finding it difficult to pass your message across, ask them to pass you on to somebody senior who may be able to help you further.
Make sure you contact all those creditors that you owe money to, which has a security attached to the borrowing.
As a rule of thumb, to not ignore the letters and telephone calls from your creditors. Doing this will not help the problem; it will only make it worse.
Think twice if you want to take a consolidation loan.
Take some time to drop all your debts and the amount that you owe, and prioritise those states that needs to be paid urgently.
If you receive a letter from the court, tried to respond to these letters. Because not doing so will only show your creditor that you are trying to ignore the problem. Try to attend any summons to the court; this will give you a chance to explain your version of the story
Why Use Us?
If you have debts upto £10,000 than our Debt Management specialists can help you by designing a debt management plan for you. Our Practitioners are industry regulated with many years experience in dealing with people like yourselves. We believe in providing honest, professional and reliable service. Fill out our online no obligation enquiry form to arrange a callback from one of our specialist Insolvency Practitioners. They will be happy to listen to you and devise a plan that is best suitable for your situation.
