Debt Management, debt management plans, debt management programme
Debt Management
A Debt management plan is an informal arrangement with your creditors to reduce your monthly outgoings and bring your unsecured credit debt under control.
Informal debt management arrangements are generally suitable for those with unsecured debt of less than £15,000 with low monthly disposable income. However, they are not highly regulated and creditors can still make an individual bankrupt even if they do not default on agreed payments.
Alternativley you may look to realise equity in a property or acquire capital in some other way and make a full and final payment to your creditors. In this case we can negotiate with your creditors an agreed, affordable settlement figure where any outstanding balance may be written off.
A more formal debt management arrangement is an IVA which is generally more suitable for those with more than £15,000 unsecured debt. You can find more information on an IVA here or complete our enquiry form so we may assess your debt situation.
We will always advise you on the most appropriate solution to your needs and your information will be dealt with in the strictest confidence. If you are suffering debt problems it is important that you seek advice at the earliest possible opportunity. Please Contact Us Now so we may assist.
Debt Management Companies and Debt Management Service providers will negotiate with outstanding creditors in order to reduce monthly payments on unsecured debts to an affordable level.
How does it work?
You pay a monthly sum to the debt management company, an amount that they determine you can afford, based on your income and out goings. From this payment they take their fees and then pay percentages to your creditors included in the program.
In general, depending on your individual circumstances and level of debt, we believe that a debt management program is an option worth considering when debts are below the £15,000 level. However if your unsecured debt is over £15,000 then an IVA should be seriously considered.
In general terms if your total unsecured debt exceeds £15,000 then you are probably more suited to an Individual Voluntary Arrangement - IVA.
In order to determine whether your circumstances are more appropriate to an IVA or debt management program, please Contact Us so that we can assess your financial situation and advise on your best possible debt solution.
If, following an initial assessment, we feel that Debt Management is the best debt solution for your personal circumstance then Pathfinder Debt Management will deal with your case.
In discussions with you they will determine an affordable monthly contribution and deal with your creditors on your behalf. Once the Debt Management Plan is approved by your creditors Pathfinder will administer your case on a monthly basis and make relevant payments to individual creditors within the plan, on your behalf.
To discuss your options and allow us to assess your suitability for a debt solution, please do Contact Us as soon as possible.
To sum up, if you have big debts in excess of £15,000 unsecured, to more than 2 creditors, with income to support an Individual Voluntary Arrangement then an IVA is generally the best option.
If your level of unsecured debt is below the £15,000 mark or your income couldn't support an IVA then debt management or a consolidation loan would be a possible solution. Please Contact Us so we may advise you on your most appropriate solution.
Points to bear in mind when pursuing a debt management program are that they are not governed by a court order and your creditors could make you bankrupt at any time, even if you keep to the original agreement. Interest on debts in a debt management program are generally not stopped and this could mean that the amount you owe could actually increase over the term of the debt management program. However, this is something that can be negotiated by Pathfinder Debt Management on your behalf. If you are a home owner part taking in a debt management program, you house could be at risk if your creditors decide on the bankruptcy route.
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