Debt Management
What is Debt Management?
Debt management is a process of reducing and consolidating existing debt without borrowing additional money.
A debt management plan is designed to lower your monthly commitments, and help you sustain monthly repayments to your creditors.
Is it the right option for me?
Debt management can be an alternative to a consolidation loan or an IVA.
A debt management plan could be the way forward if:
- You are unable to obtain credit
- You want to avoid IVA?s or bankruptcy
- You are unable to afford existing credit repayments
A debt advisor will offer advice based on your individual circumstances.
How does it work?
A debt advisor will carry out an in-depth assessment into your current financial situation.
Your creditors will be approached, and negotiations will be made on your behalf to reduce your repayments, calculating just one affordable monthly payment.
The debt management company will then distribute the payment to each of your creditors.
Benefits of Debt Management
- One affordable and realistic monthly payment
- Less pressure from creditors to make repayments
Creditor
Someone you owe money to.
Unsecured lending
Total loan & credit card debts excluding your mortgage and any hire purchase.
Country
The country you currently live in.
Insolvency Practitioners
Also known as an IP, a person who specialises in formal insolvency cases.
Valuations
The process of determing the current value of an asset.
Equity
The difference between the market value of a property and the claims held against it.
Lender
Someone you owe money to.
Eviction Order
A court order by which a person may be evicted.
Arrears
An unpaid and overdue debt.
Disposable Income
The amount of income left to an individual after taxes have been paid, available for spending and saving.
Statement of Affairs
A financial report showing assets and liabilities at expected liquidation values and shareholders' equity.
Insolvent
Unable to meet debt obligations.
Secured Loan
Money borrowed using goods or property as a guarantee.