Could I Benefit from a Debt Management Plan?
Finding your way out of debt can seem as daunting and hopeless as escaping the ancient catacombs of Egypt with the walls quickly closing in around you. Fortunately the solution for the former does not necessitate an Indian Jones-esque stroke of genius – a simple Debt Management Plan can help you wriggle out of the clutches of your creditors.
A Debt Management Plan will help you broker a deal with your creditors, securing a repayment plan that your household can realistically afford. This plan will incorporate one simple, standardised payment made at agreed upon intervals that will be distributed between your creditors as per the agreement of the Debt Management Plan.
Debt Management Plans are designed to help you work yourself out of debt within 10 years and relieve the pressure asserted by creditors chasing their unpaid debt. Your Debt Management Plan will be instigated by a specially trained advisor who will aspire to create a package that is attractive for all parties involved. The advisor will operate with your best interests at heart and request that all charges and interest rates are frozen. Creditors may be inclined to accept a plan that will result in a lower total repayment.
The plan will incorporate the bigger picture of your financial situation to ensure that it is not plunging you further into debts and can be realistically repaid. All aspects of your expenditure will be considered and your living costs will be taken into account before a plan is proposed and agreed upon. This will help protect you against seeking further financial resources and take on further debt.
Your Debt Management Plan will be constantly reviewed and updated to incorporate the latest financial situations of all parties to ensure that it is still realistic and beneficial to all involved.
Can I Qualify for a Debt Management Plan?
A Debt Management Plan can be customised for a wide selection of different parties with widely ranging needs and situations. However, there are a few stipulations that need to be adhered to for you to qualify for such a plan.
Your debts must be owed to at least two different creditors. A Debt Management Plan cannot be used to alter the repayment amounts being made to a single creditor or a means to freeze the interest rates and charges attached to a single debt.
After taking into account your essential living expenses, you must be able to demonstrate at least £80 disposable income. Without this, creditors may be unwilling to enter into a Debt Management Plan with you. Proof of income/benefits must be disclosed before a Debt Management Plan can be agreed upon.
Finally, your debt must total at least £1,000 for you to qualify for a Debt Management Plan.
How do I Initiate a Debt Management Plan?
If you believe that your debt qualifies you for a Debt Management Plan, consult an expert advisor, and determine whether you are one of the millions of Britons who require help with their debt.
This advisor will contact your creditors on your behalf and try to negotiate an effective plan for debt that will benefit all parties involved.