What is Debt Management?
Affordable debt repayments. Plus all interest and charges are requested to be frozen.
Debt Management is a debt plan used to manage your unsecured debts into one affordable monthly payment. Debt Management involves negotiations with your creditors to often reduce your monthly payments into a more manageable payment.
The key advantage is having one affordable monthly repayment to make which is paid to your creditors on your behalf. All communication between your creditors and yourselves will be handled, taking away the hassle of dealing with creditors. Once your primary living expenses have been included in your financial statement, you only pay what you can afford. This way, you can still pay those important bills and they look after the rest for you.
How can Fresh Finance help?
Fresh Finance connects you to a partner company which is a specialist IVA provider. As part of their processes, they will discuss all possible options with you, to enable you to make an informed decision on the option that is best for you. If you decide that Debt Management is your preferred solution, and you wish to pursue it further, you will be signposted to a specialist Debt Management provider.
A Debt Management plan is an informal arrangement meaning there are no contracts to tie you in. You can withdraw at any time, but so can your creditors.
Am I eligible?
- Struggling with repayments on debts such as credit cards and loans?
- Your unsecured debt is greater than £2,000
- You can afford to pay more than £80 per month towards your debts
Key Facts about Debt Management
- You only pay what you can afford
- Your credit rating could be affected. If you are already struggling with your repayments then your credit rating is likely to be poor.
- Creditors are not obliged to agree to a Debt Management Plan nor freeze interest and charges. This can lead to an increase in the total sum repaid and can extend your repayment period. Before entering a plan, please ensure you have an estimate for the total repayment period and length of time for the plan subject to your creditors accepting the arrangements
- A Debt Management Plan is informal meaning both you and/or your creditors can withdraw from it at any time
- Failure to keep up your repayments once a repayment plan is set may result in arrangements with your creditors to be broken. If you feel you are struggling with your arranged payment you will need to contact your debt management provider and they shall review your repayment plan and see what options are available to yourself.