The first step to becoming debt free.
This plan only incorporates unsecured debts. Mortgages, Hire Purchase and secured borrowings will have to continue to be paid. Your house is at risk from both types of borrowings if you do not keep up repayments.
We will put together either a short time debt management plan that will allow you some time to try and get your finances in order, or a longer term plan that will enable you to pay your debts in full.
This is an informal arrangement with your creditors that can work well if adhered to. Creditors are under no obligation to accept this plan, but most will be willing to allow this if you are genuinely trying to pay your commitments. Interest is not always frozen although we will make every effort to ensure this is negotiated with the creditors. There are no guarantees with the interest being stopped completely or even frozen.
The plan will be realistic in that it will show your creditors that although you are currently experiencing financial constraints, you are in fact trying to repay the debts. They will be given an income and expenditure, which will show all of your outgoings on a monthly basis and your income, all of which will be reviewed on a 6 monthly basis. DebtManUK will negotiate on your behalf. Some creditors may expect a review on a more frequent basis.
Dependent on the level of your debts the plan can last anywhere between 36 months and 120 months. For anyone with considerable debt problems, entering into our Debt Management Plan is an effective first step on the road to a financially stable, debt-free life. You will be required to make a monthly contribution that will be forwarded to the creditors on a regular monthly basis. We will talk to your creditors on your behalf as long as you make these regular payments. Failure to do will only make the negotiations harder and creditors will start demanding larger payments. Payments are made until your debts are paid in full. On a regular basis we will assess your circumstances and if another solution is a better way forward for you then we will advise you accordingly.
Any fees that will be charged by DebtManUK are clearly stated and will be incorporated within the one monthly payment you will make.
The benefits of a debt management plan are:
- You will be asked to make a payment to the creditor that is financially viable to you and your family.
- You will not be asked to deal with your creditors.
- Your payments are re-evaluated every 6 months so that any changes to your situation can be taken into account.
- You only make one payment a month.
A Debt Management Plan may not be suitable if:
Your surplus income is low and would therefore mean that you would be making the repayments for many years. If this is the case there are other options available such as a Scottish Protected Trust Deed, or in certain circumstances, Sequestration (Bankruptcy). This will be presented to you, to allow you to make an informed choice.
Our staff are here to ensure you are given every solution available to allow you to make informed choices about the way forward to resolve your financial difficulties.
THANK YOU FOR CHOOSING DEBTMANUK AND PLEASE BE ASSURED WE ARE HERE TO HELP