Debt Management Plans
If you are struggling to manage multiple debt repayments and find that keeping up is growing increasingly difficult or expensive, you could benefit from a Debt Management Plan. A Debt Management Plan allows you to make a single, affordable monthly payment which is distributed between your creditors on your behalf.
Our advisors deal with your creditors on your behalf, often freezing or reducing interest and charges, whilst negotiating a simpler, more manageable monthly payment plan. This payment plan is based upon calculations of your monthly income and outgoings. That way we can ensure that your monthly repayment amount will be covered by your disposable earnings.
Debt Release Direct will deal with all letters and phone calls so that you don’t have to, arranging an affordable and timely payment plan for your unsecured debts which will save you time, pressure and money. This means that we are not just easing the financial burden but also help relieve some of the stress associated with debt.
Is a Debt Management Plan right for me?
A Debt Management Plan is suitable for individuals who want to consolidate their debt repayments making it simpler to pay their debts in full within a reasonable amount of time. Debt Management Plans are among the most common debt solutions, but are not suitable for everybody’s circumstances and depending on the amount of debt that you are dealing with, you may require a different or alternative solution.
If you cannot afford to repay all of your debts, then ask for advice on Individual Voluntary Arrangements (IVAs), Full & Final Settlements or Bankruptcy. If you would like to speak to a Debt Release Direct advisor to discuss your debt consolidation options, you can call for FREE on 0800 804 7538.
What are the advantages of a Debt Management Plan?
- You can manage your debt with a single, affordable monthly repayment
- Our experienced advisors will negotiate directly with your creditors on your behalf
- Interest and charges can often be reduced or frozen
- A Debt Management Plan is an informal agreement which you can cancel at any time
What are the disadvantages of a Debt Management Plan?
- Any delay in payment to your creditors, including any payment made to set up your plan, may result in you accruing more debt
- Any missed or reduced payment to your creditors will extend your repayment term.
- Although usually cooperative, your creditors are not obliged to freeze or reduce interest or charges. In these circumstances a Debt Management Plan could result in an increase in the total sum repaid, and we will endevour to advise you as soon as possible, if this is the case.
How does a Debt Management Plan work?
If you decide a Debt Management Plan is right for you, we will speak to your creditors and negotiate a debt repayment plan. Once this agreement has been reached, you will make a single payment to Debt Release Direct every month and we will handle the rest; distributing this payment among your creditors on your behalf (after deducting our monthly fee) .
You receive a dedicated emergency telephone number and ongoing support and advice whenever you need it, plus every month we provide you with a breakdown of receipts, costs, and exactly what each of your creditors have been paid.