• 
  
  Debt Management
• 
  
  Debt Management - What Is It?
• 
  
  How Debt Management Works
• 
  
  Debt Management Pros & Cons
• 
  
  Debt Management FAQs

Debt Management Plans

Debt Management, as defined in the UK;

For many people who find themselves in a situation where they are simply no longer able to cope with their financial obligations, a debt management solution can be used where they can reduce their monthly repayments, avoiding bankruptcy, and providing relief from the stress of being in arrears every month.

Furthermore your commitments are simplified and you will be able to deal with your creditors as a whole instead of individually.

Debtsolver offer a debt management service for individuals who are resident in the UK. It should be stressed that debt management solutions are only available on unsecured debts and does not apply to secured loans such as mortgages, some car finance packages, hire purchase agreements and leases.

If you fall into the latter category, we would urge you to contact us anyway, as we may be able to find an alternative solution.

Although debt management negotiations can take place informally, in the end you as the debtor would enter into a new contract with your creditors. You would need to provide evidence that any previous contractual liabilities can no longer be met.

This means that you would usually need documentary evidence of a change of financial circumstances, for example due to job loss, bereavement, ill-health or other crisis that has led to a substantial drop in salary or income.

The reduced monthly payment is shared between your creditors, who benefit because they can avoid either expensive legal proceedings or court appearances, or paying fees to debt collectors. Bankruptcy can be a costly and drawn-out process in the UK, and debt management is usually a better financial alternative for your creditors, so they will often extend favourable repayment terms to avoid this.

It's important to realise that unlike debt consolidation, debt management is not a new loan; it's a repayment scheme with your creditors whereby you will usually make a reduced monthly payment that is shared between them. Debtsolver's personal debt managers will help with the debt management process and can handle difficult negotiations on your behalf.

If you would like more information, ring Debtsolver now on 08000 434 336 (Free for UK residents only).