Debt Management and Consolidation
- We can negotiate to lower your repayments on your behalf
- All information is dealt with in the strictest confidence
- Please note by reducing your monthly payment there may be an increase in the sum or term of the debt.
Debt Management is an informal process of negotiation with unsecured creditors to obtain a reduction in the repayment amount and / or a reduction in interest charges. The negotiation involves providing proof to the creditor that the individual is unable to meet all their contractual liabilities.
- There is no charge for advice given at the initial enquiry stage. However a fee will be charged upon entering into any contractual arrangement to help manage your debt. Full details will be explained and confirmed in writing
- You are under no obligation whatsoever
- All discussions are conducted in strictest confidence
We will find an affordable payment for you, allowing you to make just one payment each month. Once we receive your payment, we will begin negotiations with your unsecured creditors and request that they freeze or reduce their interest charges and therefore agree to a new and often lower monthly payment. Where interest charges are frozen, the money we pay to your credit companies is taken off the debt rather than being used to pay interest charges. Please note commencing a Debt Management may cause you to default on contractual payments to your creditors. Any default may damage your credit rating, increase the amount owed or lengthen the duration of your repayment.
How do I know my debts are being paid?
We will apportion any payments received from you (less our monthly management charges) between your creditors proportionately, based on how much each is owed, and will issue a statement to you showing how much is paid to each creditor. This remains fixed unless your circumstances change. We will also issue a quarterly statement showing all transactions on your account. In addition to this, you will still receive your statements from your creditors.
Will this affect my credit rating?
When entering into a Debt Management Plan or agreement, you will be breaking the original terms and conditions of your initial repayment agreement with your lender. Due to time required to arrange and distribute initial payments to your creditors, contractual payments to creditors may be missed. This may have an adverse effect on your credit record.