Debt management is a solution to your debt problems whereby you reduce your monthly payments to your creditors while you’re experiencing financial difficulty.

People normally let companies ‘manage’ their debt on their behalf until they’re on a more sound financial footing and can go back onto their full contractual repayments.

You generally need to owe more than £1,500 to two or more creditors and also be in receipt of a regular income. Please note that in some cases job seekers allowance and income support are not classed as regular income for the purposes of debt management.  Please seek professional debt advice to clarify your own individual circumstances.

Debt Management – how does it work?

Your financial situation will be assessed by way of an income and expenditure calculation which will exclude any payments to your creditors and will focus on necessary expenditure such as food, utility bills, rent or mortgage and any transport costs.

At the end of this exercise your expenditure is subtracted from your income and the figure left is called your Disposable Income (DI), which is what you have left to pay your creditors. If this figure is lower than your contractual payments then you qualify for debt management as you cannot afford to repay your debts.

With debt management you stop paying your creditors and pay your agreed monthly amount to us and we then distribute it amongst your creditors minus the management fee.

You then stay on the debt management plan until you can go back onto full contractual payments or pay the debt off using other methods. The payment for the service is because we deal with any letters, phone calls and any other correspondence from your creditors and also negotiate on your behalf to freeze all interest and charges so helping to keep the stress of the situation away from you.

Debt management works for people who are experiencing short to medium term financial hardship, those who are unable to obtain an IVA or cannot go bankrupt because of their job or who don’t want or cannot go bankrupt because of their job or who don’t want their financial situation publicised.