Debt Management

It is possible to make an informal debt consolidation arrangement with your creditors to repay your existing debts, but you must be very careful how you set up this debt solution

The term “debt management” can cover a whole array of organisations who manage debts from Citizens Advice through to the Banks themselves. Usually debt management refers to an “informal arrangement” with creditors to consolidate the debts and reduce the amount paid each month by the debtor.

There are many debt management companies offering help with these informal debt consolidation programmes in the UK . There are no restrictions upon who can actually set up such a debt management organisation or what fees they can actually charge for helping the client. Likewise because such debt management consolidation arrangements are informal the creditors do not have to abide by them either; meaning that interest and charges often do continue to be applied and the creditors can take further legal action for payment of the debts.

Ask yourself the following questions-:

• Am I being charged any upfront fees?
• Does the Debt Management Company state it definitely will get interest and charges stopped?
• How long will it now take me to pay off my debts?
• What is the monthly debt management fee?
• What are the Debt Management Companies business credentials?

There are many circumstances where debt consolidation help through a debt management arrangement may be the most appropriate solution to a client’s debt problem. However if you have more than £15,000 debts then an Individual Voluntary Arrangement may be more suitable.

If you are currently in a Debt Management Plan with any company then it may still not be too late to act to get your debt problems consolidated in a shorter timescale without any interest and charges being applied.

If you are in any doubt as to which debt option best suits your particular circumstances then debt consolidation.gb.net is able to advise upon AND help complete the most appropriate debt consolidation solution upon your behalf.

Contact us now on 0800 043 50 43 or complete the enquiry form for an immediate opinion. It could save you a lot of time and money.