If your circumstances don’t qualify your for an IVA but you need to reduce your monthly credit repayments – Then a debt Management could be your best option.
Debt Management is an informal process of negotiation with unsecured creditors to obtain a reduction in the repayment amount and / or a reduction in interest charges.
Negotiation involves providing proof to the creditor you are unable afford current repayments.
Caution
You may find yourself seeking debt advice from a company solely interested in placing you on a debt management program. This is not the case with us as we offer advice on all debt solution alternatives. Only if your circumstances are best suited to debt management will we propose this solution
How much will I have to pay ?
On our advice, you decide on a single affordable monthly payment.
Can you guarantee a reduction in payments ?
No. It depends on your ability to make your current repayment and is at the discretion of the individual creditor. However, once they are presently with proof you are struggling to make payment and are taking steps to pay your debt as best you can, they generally accept our proposal.
How long will the programme last ?
Until all debts have been paid in full. Due to the reduced payment levels, this will be longer than the terms of original credit agreements and may incur addition interest payments as the term of the credit agreement is extended.
How do I know I’m getting the best advice ?
If your circumstances are not best served by a Debt Management programme, we will advise accordingly. This may involve suggesting that we refer you to partner companies offering Insolvency advice, IVA’s or a range of debt consolidation loan.
How do I know my debts are being paid ?
Once up to date balances from your creditors have been received, your monthly payment between them are pre portioned based on how much each is owed. A statement showing how much each creditor will receive will be issued. This remains fixed unless your circumstances change. You will be issued a quarterly statement showing all transactions on your account. In addition to this, you will still receive statements from your creditors.
Will this affect my credit rating ?
When entering into a debt management agreement, you will be breaking the terms of your initial repayment agreement with your lender. This may have an adverse effect on your credit record. Due to time required arranging and distributing payments to creditors and delays in making first payment into the programme from clients, contractual payments to creditors may be missed.
Who administers the Debt Management programme ?
Debt management services promoted by Abacus are administered by Harrington Brooks (Accountants) Limited.
How is the programme administered ?
Negotiations are made with your creditors to reduce your monthly payments. They are requested to freeze or reduce their monthly interest charges. A single monthly payment is taken form yourself and paid your creditors on your behalf. This will make managing payments simpler.
Disclaimer: The material on this website is for general information only and should not be relied upon make important decisions.
The information on insolvency is for general guidance on your rights and responsibilities and is not legal or financial advice.
If you need more details on your finances or legal advice about what action to take, please contact an FSA financial adviser or solicitor.
This is an introductory guide and is not a definitive source of legal information.
Please contact us if you need more advice about how we can assist you.
Address: Columbia Drive, Worthing, West Sussex, BN13