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Debt Management Plans can freeze all interest & charges

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Pros & Cons of Debt Management

PROS

  • Payments reduced – makes debts affordable, as based on your affordability & helps to reduce stress and helps to ensure mortgage, rent, council tax etc can be paid alongside unsecured lenders as these are accounted for in the income and expenditure.
  • Flexibility of expenditure – helps to ensure affordability
  • Payments are negotiated with Lenders on your behalf – legal obligation to accept payments. Payments are fair to lenders as they are calculated on a pro-rata basis (who owes the most get the largest %)
  • Perceivable that the client may be able to retain assets that would be at ‘risk’ in formal insolvency procedures.

CONS

  • No fixed period of repayment – the duration of the plan is dependent on how much debt you have and if the lenders will agree to freeze any interest or charges. It may be that the minimum payment is less than the interest created by the debt.
  • No guarantee that lenders will freeze interest and charges. Unless creditors freeze interest and charges the time taken and amount to repaid may be higher
  • No protection from lenders/legal action.
  • Unable to deal with HMRC debts – you would have to make arrangements directly with HMRC as HMRC debt cannot be included into a debt management plan
  • Will affect your credit rating
  • If you’re unsure about whether this sounds like it’s right for you, you might want to think about other options for dealing with your debts.

How does Debt Management work?

See if You Qualify

complete our online form and speak to one of our friendly advisors to discuss your options

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If this is the right solution for you, we can start the ball rolling whenever you’re ready. We will help support you all the way.

Your Choice

If an DMP is the best solution for you, we can start the ball rolling whenever you’re ready. We will help along the way until you become debt free!

Do I qualify?

Just Some Of The Creditors We Could Help You With

Free Debt Advice

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