Debt Management consolidates all your debts in to one affordable monthly or weekly payment.
Insolvency UK is a subsidiary of Global Asset Finance Limited who have a number of providers of Debt Management plans that may be able to assist you.
The Debt Management company will take details of your debts, income and outgoings, and provide proof to your creditors that you can't afford current repayments. You will then make one affordable payment to the debt management company, which will in turn distribute to your creditors. Typically, the new payment is half your existing payments, but will depend upon individual circumstances.
The debt management company charges an administration service for arranging this for you.
- One single affordable monthly payment
- Reduce or freeze interest and charges
- Stop demands from your creditors
- Regain control of your finances
A dedicated point of contact for expert help & guidance
How can it assist you?
It creates lower payments for you.
Payments are based on your disposable income.
Less hassle, pay the Debt Management company and they forward payments to your creditors.
Creditors liase with Debt Management company not you.
If your circumstances change for the better or the worse, you may adjust your payments accordingly.
No need for you to get involved in legal proceedings. Unlike an IVA, debt management is an informal agreement, not involving the courts and it does not require minimum debts.
Does not put your home at risk.
Unlike a secured debt consolidation loan, you do not run the risk of having your home repossessed should you not be able to make payments.
Examples of where debt management fits in
- Debt amount: £39,000.00
- Was paying: £891/month
- Now paying: £396/month
Client has debts of £39,000 with 7 creditors. Client is aged 67 with a household income of £1,150 per month (including his own and his wife's pension). He was paying out £891per month. He owns his home, without a mortgage, valued at over £400,000. He was unable to get a mortgage or secured loan due to age and insufficient disposable income. We have reduced his payment to £396, with a view to getting a mortgage or downsizing his home in the future.
- Debt: £12,950.00
- Was paying: £350/month
- Now paying: £180/month
These clients were repaying all their monthly credit payments until the husband lost his job, halving the household income. A few months later the savings which they had were all gone and so they tried looking at an unsecured loan to reduce monthly payments, not being homeowners they were unable to borrow against their property. Their low income meant that they were unable to get any type of loans and now they were beginning to miss payments and default on existing loans.
The clients looked at the possibility of an IVA but as the husband would be returning to work, an IVA would effect the client for too long given that the husband may be able to return to work within the year. Debt Management was the right solution for them because the payments were flexible and could be increased when they were both working again.
Contact us today for a confidential talk. We'll show you a positive way forward. To speak to an adviser, who will call you to discuss your specific requirements click here to submit your details via our contact form