A Debt Management Plan is an arrangement between you and your creditors which we manage for you. The debt associated with being in debt is removed as you repay your debts at a rate you can afford and we deal with your creditors.
Advantages of a Debt Management Plan:
You only pay one affordable monthly payment based on your financial circumstances.
It’s easier for you to keep track of one payment rather than having to make numerous payments to different creditors at different times of the month. You pay us and we forward pro rata payments to your creditors on your behalf.
If your circumstances change, you may speak to your account manager to adjust your debt management payments accordingly.
As well as helping reduce your payments we will negotiate with your creditors to freeze interest and charges on your debts, but we cannot guarantee they will agree to this.
All negotiations to reduce payments to creditors are done by us on your behalf. The creditor is not obliged to agree to the offers proposed but we will always strive to achieve the best outcome available for you based on your circumstances.
You can forward copies of all letters to us so we can deal with them accordingly. You can also explain to us about any phone calls you receive from your creditors so we can respond and deal with them on your behalf.
You are not tied into any formal contract with Curtis Faraday. If your circumstances change and you want to pay your debts without our help then there will be no cancellation fee. A debt management plan can allow you to regain control over your finances.
Are there any Disadvantages?
A Debt Management plan may result in repaying your debts over a longer period and may increase the total amount to be repaid. Your ability to obtain credit
will be affected in the short term, and possibly in the medium to long term.
It is important to consider the pros and cons of a Debt Management Plan before entering into one – an experienced debt management advisor will be able to explain the process of a Debt Management Plan in more detail depending on your situation.
One of the main disadvantages of a Debt Management Plan is that interest on your debts cannot always be frozen – which can add to your debts and the time taken to repay them.
Unlike an Individual Voluntary Arrangement, a Debt Management Plan is an informal agreement so creditors are not obliged to freeze these rates. But as long as you check this with your creditors and keep up-to-date on charges, you won’t be in for any surprises. Also, you are not protected on a Debt Management Plan, so creditors could still take legal action to recover the debt. You could also continue to receive letters from your creditors.
On a Debt Management Plan your credit rating will be affected and you will find it difficult to secure more credit, but you will be paying off your existing debts which will eventually free some finances in the future.
Debt Management Plans only cover unsecured debts so mortgages and loans secured against your home can not be included.
To find out more on how a Debt Management Plan can help, fill in the Debt Management Contact Form on the right ->
Debt Management Contact Form:
Talk confidentially to our qualified Debt Counsellors by filling in your contact details below:
* Remember to fill in your details now and we can call you!
0845 094 3725
