How does debt management work

• Are you struggling to manage your debts?
• Do you want to avoid Bankruptcy and IVA?

The basis for a debt management company came about as a result of work by the Money Advice Trust, and the creditor sector. The general idea is to promote a positive approach to dealing with a situation which is clearly a “can’t pay” scenario. Won’t pay situations will never be tolerable to creditors, and will be pursued vigorously.

Historically, this is where the problem has been; how to distinguish to a creditor a genuine case of can’t pay, from a case of won’t pay. Much work has been carried out to ensure a “partnership” approach to debt, between the creditor and the customers Money Advisor.

The scheme has secured a commitment from creditors, so that in the case of “cant pay” situations, offers for reduced payments put forward by Money Advisors, using scheme format; should be accepted.

Debt Management Companies are experienced in handling peoples debt problems and will discuss with you what you can afford to pay each month.

Your debt adviser will then make a formal approach to all of your loan and credit companies offering them the lower payment. This is done in a prescribed format so the lenders will recognise you have genuine payment problems and should then accept your offer of payment.

Take control of your finances
Don’t hide from your debts. Take control and contact us today to find out how a debt management plan can help you.