If you're finding it impossible to refinance your existing debts into a single monthly payment or finding your credit repayments unmanageable and want to avoid the severity of an IVA or bankruptcy then debt management might be the answer for you.

This is an arrangement made with your creditors designed to help you make affordable and sustainable repayments each month. A debt manager will go through your finances with you and prepare a financial statement and budget, agree an affordable monthly payment plan with you and negotiate with your creditors.

Please note that missing payments may cause a breakdown of the agreement and might not be able to be remedied after the event. A debt management plan is where you pay a reduced amount of money forever until the debt is cleared.

Arranging a debt management plan:

A full assessment of your financial situation is carried out. To do this, we need to know your regular income and expenditure, who you owe money to (your creditors) and any other relevant information about your personal circumstances.

By collating this information into a financial statement, we are then able to determine how much you can realistically afford to offer each of your creditors.

Your creditors will then be approached and asked to accept the reduced payments. In most cases creditors are happy to agree the plans we initiate because they know, from experience, that such plans are realistic and sustainable.

You then make a single monthly payment, all of which is distributed pro rata to your creditors. Every penny of your monthly payment goes to reducing your debts.

Throughout the duration of your plan, you will have an assigned case officer whom you can contact should you experience any difficulties whilst the arrangement is in place.

Your plan is reviewed at regular intervals to ensure that is still meets your circumstances.

The plan will continue until your debts are cleared or until you wish to voluntarily end the arrangement. The most common reason for this being an improvement in income enabling a client to leave the plan and revert to their original monthly payments.