What is Debt Management?
Debt Management is a process by which we negotiate with your creditors to obtain the lowest monthly obligation needed to satisfy all of your current creditor accounts.
What are the advantages of Debt Management?
- No obligation to take up our services.
- Monthly fees become affordable relieving you of some of the pressure.
- Having Debt Specialists working on your behalf , gives greater potential for negotiating improved repayment terms to suit you, and begin managing your debts.
- Our extensive experience in this field allows us to properly assess each individual situation and to be able to recommend an appropriate debt management strategy
- We act on your behalf throughout the execution of our professional service
- Regular reviewing of your circumstances will ensure the strategy in place is the best and most suitable method to manage your debts
- 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.
- Debt Specialists deal with every stage of your enquiry with strict confidentiality
What are the disadvantages of Debt Management?
- It will take longer to pay back your credit due to the fact that you are paying less back to your creditors each month.
- Your ability to obtain credit will be affected for 6 years.
- History of late or missed payments is recorded by Credit Reference Agencies until the account is closed and then held on credit record files for 6 years.
- Default notices are kept for 6 years from date of default, and may also be recorded when token payments are made.
- Adverse data held on a credit record may influence future decisions by creditors and could affect the cost and /or availability of credit in the future.
- Debt Management Plans may not be the most suitable solution for larger debt amounts. In this case an Individual Voluntary Arrangement (IVA) may be more suitable, which is a more formal type of agreement. This is largely due to the fact that with larger debt volumes, credit companies are reluctant to freeze the interest payments that are currently being charged on your debts. This could lead to a never ending debt situation. An IVA is a formal legal agreement which can only be set up and supervised by a Licensed Insolvency Practitioner. Debt Specialists Limited will refer any such cases to a local trusted and established professional. Full details will be given and confirmed in writing.
There is no guarantee that your creditors will agree to reduce or freeze interest or charges, or take reduced payments. Terminating a Debt Management Plan before it runs it’s full term may result in creditors re-instating or starting debt recovery actions and legal proceedings.
To find out if you qualify for a Debt Management solution call us today or fill in our online form.
If you are still unsure about the Debt Management solution, then please read our frequently asked questions about Debt Management.
In addition further debt guidance can be obtained from the following link Insolvency Service Debtor Guide