Debt Management AdviceWho would suit a Debt management program Debt Management usually suits a person or couple with less than £15,000 of total unsecured debts with 2 or more creditors. Normally someone would be overcommitted to the point where they are starting to miss payments or cannot maintain a reasonable standard of living with their current income. What is Debt ManagementA Debt Management program allows someone to pay what you can realistically afford to your creditors in one monthly payment. What will the Debt Support Company doThe Debt Support Company will negotiate with your creditors on your behalf: i) To accept reduced payments in line with the client's affordability. ii) To reduce or freeze the interest, with the intention that payments made, will be towards clearing the balance, rather than just paying interest or charges. The Debt Support Company will provide you with a dedicated debt management advisor who will: i) Be available to answer any questions you have throughout the process. ii) Deal with any creditor correspondence that you have. iii) Will review your financial situation every 6 months to ensure that the client maintains a reasonable standard of living whilst paying off your debts within the shortest possible timescale. iv) Keep you informed on how the negotiations are progressing and what the results of the negotiations are. What are the benefits of Debt ManagementThe client takes control of their finances. The Debt Support Company deal with the creditors direct, so the client does not have to. The client makes one affordable monthly payment The Debt Support Company will attempt to reduce or freeze creditor interest rates. The Debt Support Company will regularly review the client's Income and Expenditure. Every client will get their own individual debt management advisor. What are the disadvantages of Debt ManagementDebts will normally be paid over a longer period. Paying reduced payments may lead to your ability to obtain credit in the short, medium and long term to be effected. Creditors are not obliged to accept reduced payments or freeze the interest and that, unless they do, repaying the debt over a longer time will lead to an increase in the level of the total amount to be paid. (the Debt Support Company will keep you continually updated on the status of negotiations). Your first Debt management payment is as a fee to The Debt Support Company, and if this means that you miss a monthly payment to your creditors you may go further into arrears.
|
|
