Debt Management Plans

When you are finding it difficult to manage the repayments of multiple debts, it is important to remember that help is available. If juggling increasingly expensive debt payments is becoming a struggle, you could benefit from a Debt Management Plan.

With a Debt Management Plan, you make just one affordable, monthly payment and this sum is distributed between each of your creditors on your behalf.

Your new payment plan is based upon calculations of your monthly income and outgoings. This ensures that you will be able to afford your monthly payment using your disposable earnings.

Our team of experienced advisors also communicate with your creditors, so you don’t have to. We work with each of your creditors, to negotiate a simpler, more manageable, monthly payment plan. In most cases it is also possible to freeze or reduce interest and remove any charges that have been applied to your debts.

Debt Release Direct responds to all letters and phone calls from each of your creditors. This means that we don’t just save you money, but also save you time. A Debt Management Plan removes the pressure of growing repayment and relieves the stress associated with debt.

Is a Debt Management Plan right for me?

Debt Management Plans are suitable for any individual who wishes to consolidate a number of unsecured debt repayments into one straightforward monthly payment. Doing so can make it easier to pay debts in full, within a reasonable amount of time.

More people choose a Debt Management Plan than any other debt solution. But this does not mean that a Debt Management Plan is suitable for every debtor’s circumstances. Depending on the amount of debt that you are dealing with, you may require a different debt repayment method.

If you cannot afford to repay all of your debts, simply ask for advice on Individual Voluntary Arrangements (IVAs), Full & Final Settlements or Bankruptcy. An expert Debt Release Direct advisor will be happy to discuss your debt consolidation options.

Call for FREE on 0800 804 7538.

What are the advantages of a Debt Management Plan?

• You can repay all of your unsecured debts with a single, affordable monthly payment.
• We will negotiate with your various creditors on your behalf.
• Interest payments and added charges can often be reduced and frozen.
• You are free to cancel the plan at any time as it is an informal agreement with each creditor.

What are the disadvantages of a Debt Management Plan?

• Payment delay could result in accruing more debt.
• Missed payments or a reduced monthly payment will extend your repayment term.
• Your creditors are not obliged to freeze or reduce any interest or charges, though often do. If they refuse, a Debt Management Plan could result in an overall increase to the total sum repaid. Debt Release Direct endeavours to advice you as soon as possible if this is the case.

How does a Debt Management Plan work?

If a Debt Management Plan is the right debt solution for you, we will contact your creditors and negotiate a new repayment plan. Once a new payment plan has been agreed upon, you will make one monthly debt repayment to Debt Release Direct. We will take care of the rest. It’s that simple.

We distribute this payment to your creditors, after deducting a small monthly fee.

You receive a dedicated emergency telephone number and ongoing support and advice as and when you need it. We also provide monthly updates on the status of your plan with a breakdown of receipts, costs and the exact amounts paid to each of your creditors.