There are lots of different factors to consider when giving the best debt advice, including how much you owe and to how many creditors, whether you own a home, what type of debt it is (eg. secured or unsecured) and much more.
We have tried to lay out in the most clear and concise manner when each kind of debt solution is most appropriate, what the advantages and disadvantages are, and how they work. We strongly recommend that you contact our experienced Debt Counsellors for expert debt advice before you make any decisions though, it's a free service and you can get in touch for free as well!
We have tried to lay out in the most clear and concise manner when each kind of debt solution is most appropriate, what the advantages and disadvantages are, and how they work. We strongly recommend that you contact our experienced Debt Counsellors for expert debt advice before you make any decisions though, it's a free service and you can get in touch for free as well!
Debt Advice 
The debt solutions that are
available include:
available include:
Debt Management Plan
A Debt Management Plan is an informal arrangement with your creditors which will reduce the amount that you have to pay each month into one manageable payment.These are suitable if you don't have too much to pay in debt, otherwise other options may be better. If you contact us we will be able to give you free debt advice and recommend what will be the best solution to your debt problems.
A Debt Management Plan is usually handled by a third party on your behalf, and at DebtAdvice.net we have Debt Counsellors who specialise in negotiating the best arrangement. We can provide this service for a small fee of 15% of your monthly payments once the plan has been set up with your creditors.
SUITABLE?
Is a Debt Management Plan Suitable for You?
There are lots of different debt solutions available, and it depends on your circumstances as to which will be the best for you. We can help you to reach the best decision by offering you free debt advice from our experienced Debt Counsellors.
Some of the factors that will make a DMP suitable for you include:
You can no longer afford to make the full payments on your debt every month,
You would like a third party to negotiate a deal with your creditors on your behalf,
You have a number of unsecured loans which you cannot afford to pay the full amount on every month,
You have some income left over after taking out essential living costs,
Your debt is not very high.
There are lots of different debt solutions available, and it depends on your circumstances as to which will be the best for you. We can help you to reach the best decision by offering you free debt advice from our experienced Debt Counsellors.
Some of the factors that will make a DMP suitable for you include:
You can no longer afford to make the full payments on your debt every month, You would like a third party to negotiate a deal with your creditors on your behalf, You have a number of unsecured loans which you cannot afford to pay the full amount on every month, You have some income left over after taking out essential living costs, Your debt is not very high.HOW WORK?
How Does a Debt Management Plan Work?
If you contact DebtAdvice.net we will be able to give you free debt advice, and if your circumstances make a Debt Management Plan your best option we will be able to contact your creditors on your behalf in order to negotiate a viable arrangement.
The first thing that you will have to do is work out how much you can afford to pay after your essential living costs have been taken care of. We will then be able to approach your creditors and let them know how much you are able to pay.
There is no obligation for the creditors to agree to a Debt Management Plan, however they often will as it is in their best interests if you continue to make payments. Our expert staff have a lot of experience in negotiating favourable outcomes. We are also often able to get interest rates and charges frozen or reduced.
Once the arrangement is in place you or your creditors can pull out of it at any time although we do ask that if you decide to discontinue the arrangement or you are unable to make payments anymore that you contact us first so that we can notify your creditors.
If you use our services to arrange a Debt Management Plan there will be a 17.5% fee which is taken out of each monthly payment before it is distributed to your creditors. Find out more in the “About Us” section.
If you contact DebtAdvice.net we will be able to give you free debt advice, and if your circumstances make a Debt Management Plan your best option we will be able to contact your creditors on your behalf in order to negotiate a viable arrangement.
The first thing that you will have to do is work out how much you can afford to pay after your essential living costs have been taken care of. We will then be able to approach your creditors and let them know how much you are able to pay.
There is no obligation for the creditors to agree to a Debt Management Plan, however they often will as it is in their best interests if you continue to make payments. Our expert staff have a lot of experience in negotiating favourable outcomes. We are also often able to get interest rates and charges frozen or reduced.
Once the arrangement is in place you or your creditors can pull out of it at any time although we do ask that if you decide to discontinue the arrangement or you are unable to make payments anymore that you contact us first so that we can notify your creditors.
If you use our services to arrange a Debt Management Plan there will be a 17.5% fee which is taken out of each monthly payment before it is distributed to your creditors. Find out more in the “About Us” section.
EFFECTS?
What Will be the Consequences of a Debt Management Plan?
The main consequence of taking out a Debt Management Plan is that your monthly outgoings on debt will be significantly reduced, to a level that you are able to afford. If you contact us for advice on debt we will be able to tell you if this, or another option will be your best choice.
As you will be continuing to make payments, your credit rating should not be affected.
When the arrangement comes to an end you will be debt free.
The main consequence of taking out a Debt Management Plan is that your monthly outgoings on debt will be significantly reduced, to a level that you are able to afford. If you contact us for advice on debt we will be able to tell you if this, or another option will be your best choice.
As you will be continuing to make payments, your credit rating should not be affected.
When the arrangement comes to an end you will be debt free.
ADVANTAGES
What are the Advantages of a Debt Management Plan?
Your monthly repayments will be reduced to one affordable repayment given your circumstances,
You will not have to negotiate with your creditors yourself,
Your property will not be at risk,
Charges and interest rates could be frozen or reduced.
Your monthly repayments will be reduced to one affordable repayment given your circumstances, You will not have to negotiate with your creditors yourself, Your property will not be at risk, Charges and interest rates could be frozen or reduced.DISADVANTAGES
What are the Disadvantages of a Debt Management Plan?
Only applies to unsecured debt,
Could extend the period of time in which you have to pay off your debt,
Interest rates or charges can not always be reduced or frozen,
Your creditors can pull out of the arrangement at any time.
Only applies to unsecured debt, Could extend the period of time in which you have to pay off your debt, Interest rates or charges can not always be reduced or frozen, Your creditors can pull out of the arrangement at any time.Contact Us
If you're unsure as to whether this would be your best option then get in touch with our Debt Counsellors for free debt advice. All the information that you give us will be completely private and confidential.Also get in touch if you would like us to negotiate with your creditors on your behalf.