Money Outlet

Debt management is a an agreed plan set up by a debt management company for anyone who has fallen in arrears with unsecured debts and does not wish to deal with the creditors themselves. Once an agreement is reached with the creditors, a debt management plan is then put into place and all outstanding debts are consolidated into one affordable monthly payment. The length of the debt management plan is dependent on the amount of debt to be repaid.

If you’re looking to find out more information about debt management and would like to know if this option is best for you, then please apply below. It takes less than 2 minutes and there is no obligation for your free quote. Get your life back on track today!

The monthly payment figure is established on the basis of the individual’s personal income and day to day living expenses. Once the basic necessities, such as mortgage repayments, food and general household bills, have been budgeted for, any disposable income will then be strategized into an affordable yet realistic payment to be made to the creditors. This payment is distributed on a percentage basis each month to all of the creditors to whom money is owed. The debt management company continues to manage these monthly payments until the balances are either paid off in full or the individual himself feels capable of managing the debt.

A debt management plan can only comprise of unsecured loan debts such as personal loans, excluding Hire Purchase agreements, credit cards, store cards, catalogues and overdrafts. Secured debt cannot be included in a debt management plan as any payments on secured debts that remain outstanding can result in repossession of the goods. Therefore any payments on secured loans should be prioritised.

Simply outlined, the advantages of debt management are: only one monthly payment is made, which is paid on your behalf by the debt management company who will distribute the payments between the creditors on a pro-rata basis, interest and late payment charges and fees are frozen therefore stopping the debt from further increasing, the payment is worked out on what you can genuinely afford allowing you to continue paying for your fundamental living expenses, and all negotiation is done through a debt management company so you do not have the stress of dealing with the creditors personally.

The main things to remember are that a debt management plan is not legally binding and the lower the monthly payment you make the longer it will actually take to pay off your debt. Should your financial circumstances improve, the monthly repayment can be increased and the duration of the debt management plan will naturally be completed sooner. A debt management plan will affect your personal credit rating; however any defaults on an unsecured loan are usually recorded on your credit file anyway.

There are now many debt advice agencies offering free services so beware of those who may charge an initial set up fee or a monthly management fee as these can range anywhere between 15% to 17%. Remember, you can also obtain free advice from your local Citizens Advice Bureau which will provide you with good advice and information regarding your available options.

If you’re looking for Debt Management help and would like to find out about your options, MoneyOutlet is here to help you. Simply supply your requirements in the form above and you’ll receive a Free, No Obligation quote and be put in contact with a professional debt management team that will look after Your personal situation, not those of creditors. Our service is free and we recommend you don’t delay in finding out your options any longer than necessary. Get Debt Management help today.