Ideal for:
- Clients with unsecured debt of at least £5,000
- Minimum of 2 separate creditors
- Disposable income of at least £100 a month
How it works:
A Debt Management Plan allows your client to consolidate all their debts and make just one single monthly payment based on what they can realistically afford after essential living expenses have been taken into account.
We will contact each of your client’s creditors to arrange the plan – often, with a reduced monthly payment and/or interest frozen, but this not guaranteed. Your client then makes one monthly payment to us, which we distribute amongst all the creditors involved.
Benefits:
- One manageable monthly payment
- Should your client's circumstances improve, they can complete the agreement sooner - without penalty
- Debt Management Plans are not recorded on credit files
The Facts:
- The Debt Management Plan will last until all of the debt has been paid, which is dependent on your client's situation and level of debt
- We will retain the first two payments your client makes (subject to a maximum of £500 per month) as an initial set up fee. Following that, your client will be charged a monthly administration fee which will be equal to 15% of their monthly contribution
Need more information? Read our Questions & Answers on Debt Management Plans.
