Debt Management is a form of Debt Consolidation or Debt Help that is designed to help individuals who are finding things difficult with their current level of outgoings towards debt payments. It is open to people who are currently struggling with debt payments or feel that their current debt payments will soon become unmanageable or simply too much.
- A debt management plan helps you manage your debts and pay them off at a more affordable rate by making reduced monthly payments over an extended period of time.
- We will send you a detailed monthly statement.
- We will negotiate with your creditors on your behalf and deal with all creditor correspondence.
- We will request that your creditors freeze interest and charges but we cannot guarantee this as it is down to the complete discretion of the creditor.
- We will endeavor to take away the stress and pressure you may feel by dealing with the creditors directly.
- Repays your unsecured lenders and helps you avoid insolvency – secured debts, like your mortgage, aren’t covered and you’ll have to continue repaying them separately.
- The plan does not include your assets.
- The agreement is not legally binding.
- The creditors are not legally obligated to agree to freeze interest and charges, unlike an IVA.
- Depending on your circumstances a Debt Management Plan could possibly increase the total sum to be repaid.
- The creditors always retain the right to charge fees and Debt Support cannot guarantee that interest and charges will be frozen.
- We will ask your creditors to cease any further legal action against you. However, we can’t guarantee they will stop legal action. If you break the payment arrangement in the DMP, legal action may be instigated.
You can get free and impartial advice on how to deal with your creditors at Money Advice Service. MAS do not offer Debt Adjusting or Debt Management Plans.