Should I Consider Debt Management?
Topic: finance
If, like many people you are having problems repaying your unsecured debts then one option that you may have open to you is a debt management plan.

A debt management plan works by you (or the debt company that you’ve decided to use) contacting lenders and making them aware that you are unable to meet the monthly payments which they require and that you wish to make payments which are lower.
 
These new payments your making should be practical and affordable, leaving you with enough income to pay your rent, food and other essentials but at the same time paying as much back as possible.

You will simply be paying as much as possible, without having to dig into funds that you really need.

As a debt management plan is an agreement which is flexible, your creditors are not bound by law to accept the agreement – they are free to reject it. Repaying your debts at a different rate than initially agreed will also mean that it’s going to take more time to pay all of your debts back. Bear this in mind before hand. Another factor to consider is that it can also cost you more in interest, but if you’re using a debt management company they will also try to persuade lenders to freeze and rates and charges.

Something else to consider is that you credit rating can be affected, as you are not sticking to the original contract. If you have debt problems anyway, then there is a good chance that you have a poor credit rating anyway and seeking a solution such as a debt management plan is a step in the right direct to taking action.

To read more on the benefits and drawbacks of debt help, check out our website.

Debt Management Plan
Topic: finance

Recent research has estimated that nearly a million people are having problems repaying they’re debts.  The recent financial crisis and rising cost of living has caught many people out and many individuals are now finding themselves with debt problems.

A debt management plan is designed for people who are having a problem paying off their unsecured debts each month.  They provide a solution so that people are able to reduce the amount that they repay every month.

Debt management plan companies work by taking a look at your financial situation and figuring out a plan which will let you pay back a reasonable amount towards your debt every month, while making sure you have enough money for the cost of living.

DMP’s are a good option for people who have had a recent change in their financial circumstances, which could include things such as being made redundant or getting a pay decrease.

They are also seen as a low risk option for many people because they are not a formal, legally binding agreement. This allows the person with the DMP to change their payments or stop the DMP at any time.

You will be allocated a dedicated debt advisor from your debt management plan company. This individual will be responsible for drawing up a realistic plan for you and providing you with any information or advice that you may need regarding debt.

Remember that because a debt management plan is not a formal, legal document that you creditors are not under any obligation to abide by the terms of it. This means that interest and charges write-offs cannot be guaranteed.