How debt management could help you
These days, it's easy to end up in debt. As long as you can afford the repayments, you might not even think it's a serious problem.
But that can change:
- It could be because your debts have grown and grown until you realise you can't keep up with them anymore.
- Or because you've had a sudden change in circumstances: a pay-cut, for example, or an unexpected increase in your expenditure.
Whatever the reason, addressing your debt problems should be your top priority. Unless you can bring your payments down to an affordable level, things can get out of hand very fast, with late-payment and non-payment charges adding to your debt faster than you can pay it off. Before you know it, you're in a 'debt spiral', with your debt growing all the time - and damage to your credit rating and threats of legal action only making it worse.
How debt management could help you
By reducing your monthly payments to an affordable level, a debt management plan could help you avoid all that, and bring your debt back under control rapidly.
It works like this:
You call our expert advisers. They'll go through your financial situation with you (your debts, your income, your expenditure, etc.) to find out if debt management is the best way for you to clear your debts.
- If debt management isn't right for you, they'll help you explore your other options, whether that means consolidating your debts, entering an IVA (Individual Voluntary Arrangement) or simply improving your money management skills.
- If debt management is right for you, they'll help you figure out how much you can afford to put towards each debt on a monthly basis, whilst maintaining your essential expenditure. If you agree, they'll contact your creditors and ask them to consider a few changes to the way you're repaying your debts.
The art of negotiating
Lenders aren't obliged to agree to any changes to your repayment plans. That's one reason it makes sense to work with professionals who've spent years working with creditors.
Our advisers enjoy good working relationships with every major creditor in the UK, so there's a good chance that your creditors will work with them to agree on a realistic repayment plan.
After all, it's in everyone's interests to find a way for you to repay your debt as quickly as you can afford - without taking up the money you need for essential expenses like mortgage/rent, utility bills, food and so on.
As well as asking your lenders to accept lower payments, our advisers will also ask them to freeze or reduce interest and charges wherever possible, so you can focus on repaying the debt itself.
Once they've reached an agreement, you'll just make one (reduced) payment per month, which our debt management partners will distribute among your lenders.
They'll also handle all the ongoing correspondence, asking your lenders to contact them instead of you.
Debt management - an ongoing process
Nothing in life is certain, and your creditors know this. Once you're on a debt management plan, your circumstances could change again - for the better or for the worse.
Again, it's good to have professionals on your side, ready to go back to your lenders as many times as necessary, renegotiating to keep your monthly payments at a level you can afford.
All the way through your debt management plan, you'll have your own dedicated professional, there to answer your questions, handle all correspondence with your lenders, and help you deal with any money problems you come up against. Right up to the day your final debt is paid off and you're officially debt-free.
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