What Is Debt Management
Debt Management is an informal method of arranging more affordable payment options with your creditors.
A Debt Management Plan (DMP) can be arranged with your debt counsellor or a representative from your debt management company. This will consist of an analysis of your outgoings and other priority debts such as mortgage payments, utility bills, council tax and day to day living costs.
This analysis will reveal how much disposable income you have available for paying back your debts. Normally you will then deposit this amount to your debt management company who then distribute this to your creditors.
The advantage of using debt management is that the company can negotiate with your creditors to arrange affordable payment options for you.
For example, a debt management company may be able to reduce interest on any borrowings or maybe even freeze interest payments all together. This helps you repay your debts in a controlled and realistic way enabling you to free yourself of debt.
Regular reviews of your financial situation by your debt management service can ensure that the payments are always positively suited to you, preventing you from slipping back into a difficult situation.
Debt management is just one of a number of options available to you when facing serious debt problems. These options should be looked at and considered so that you can decide which option is right for your circumstances. Seeking sound professional financial advice is always recommended.
Money High Street is pleased to have partnered with Hanover Sterling who are experienced debt management specialists and Re10, who are licenced insolvency practitioners.
Should you wish to receive impartial advice and assistance, please fill in the form on this page and an experienced debt counsellor from one of these companies will contact you.
