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Trying to settle all the outstanding debt you have on credit cards, mortgages and personal loans, as well as meeting all your expenses can be overwhelming. The increasing interest rate on debt can become crippling, leaving you frustrated and spiraling further into debt. Though it might be very hard to eliminate debt, with strong determination and an abundance of patience, it is possible. One of the options available and on hand to help you become debt free is via a consultation service from one of the debt management companies in the UK. They can help you in managing and paying off your debts, and not having to face your debts alone. They usually charge a fee for their services, but only when they can promise results which in turn will lower your debt.

What do UK debt management companies do?

Debt management companies UK help you coordinate and negotiate with your creditors in an affordable way so that you can pay off your outstanding debts. They will identify and calculate all your necessary expenses and then zero in on the amount that you can afford each month to service your debts. The best possible option to help you pay off your debts is then discussed and an action plan is drawn up. Debt Support Service is one of the leading debt management companies UK. We aim to help people who are trying to get a handle on their finances and debts problems. Our fully trained and skilled experts are perfectly placed to help you find the right solution to clear your debts.

Do debt management companies in the UK charge a fee?

There are certain debt management companies UK who charge a fee and some who provide their services free of cost. The fee paying companies will subtract their fee from your monthly payment before the remainder is passed on to your creditors. It should usually be between 10% – 15% of your monthly payment. Non-fee paying companies do also exist and in their case 100% of your monthly payment is passed on to your creditors to service your debts. They receive their fee or are funded by the creditors. Debt Support Service does not charge its customers for debt advice and organise and administer debt management plans without cost.

How do debt management companies UK help?

Debt management companies UK offer debt management plans in the UK as a solution for people who are struggling with debts of an unsecured nature. They organise your expenses, saving you the trouble of being contacted by each and every creditor, month on month, by creating a plan that you can adhere to and work your way towards paying off your outstanding debt.

What is a debt management plan UK?

A debt management plan UK is an informal agreement between you and your creditors to pay off all of your debts. It is a form of repayment plan, set up and managed by debt management companies in the UK. In a debt management plan UK, you make monthly payments to a debt management company that in turn distributes it amongst your creditors. With a debt management plan UK you can lower the interest rate that you’re paying, sometimes even reducing it to nil.

How long does a debt management plan UK last?

A debt management plan UK can last as long as 10 years. However it can be much less than that, depending on how much debt you have and how much you can afford to pay every month.

Is a debt management plan suitable for me?

A debt management plan UK is a good solution for you if :

• You have an excess amount of money leftover after you have paid expenses such as; food, rent, bills etc, and you have priority debts such as a mortgage. There is no minimum or maximum level of debt to apply for a DMP. However, you will need to pay a minimum of £5 per month towards your debt each month.
• You have large unsecured debts to pay. Secured debts cannot be paid via a debt management plan UK.
• Your credit score has suffered from missed payments.
• You need that extra bit of help and receive support and assistance from financial educators and counsellors in breaking old habits and sticking to your new goals.

So if you think a debt management plan UK is the right option for you and it meets your specific needs, then contact Debt Support Service today. Our experts will work out a budget with you and fix your debt problems for a future free of debt.

Debt has huge influence in our personal finances and is something that can feel overwhelming if not managed correctly. Situations in life may unexpectedly arise that can cause us to fall into debt, through no fault of our own. This may result in debt that can become a problem of its own, with compounding interest charges & penalties for missed payments etc. Debt might come from personal loans, medical debts, or due to an unforeseen family crisis. Debt management is very important, without adequate management of our finances, in such a situation one can rapidly lose control of circumstances and feel under real pressure. When kept at a low level, debt can appear manageable, but if not kept in check the debt can slowly mount up to become a much greater burden. If debt management becomes a problem for you, a well defined and organised plan needs to be drawn up. Seeking the help of professionals at this stage can really help lighten the load.

What is debt management?

In plain terms, debt management is the structuring and organisation of your budget on a day to day basis. With a debt management plan in place, you’ll have one monthly payment that goes out of your account that is then distributed between all of your creditors by a debt management company. A debt management plan is an effective way to take back control of your debt and stop it from snowballing. Debt management plans work best for unsecured debts such as credit cards, bank overdrafts and personal loans.

Implications of a debt management plan to your credit rating – Debt management plans do not have a lasting negative impact on your credit history. When you agree to close all of your credit accounts and establish a debt management plan, your credit history pauses. This has a temporary effect on your score, which is restored once you have left your DMP and the freeze on your credit rating is removed. In fact, a debt management plan will highlight to your lenders your positive action and willingness to pay off all your existing debts. DMP’s are usually monthly payments that are deducted directly from your bank account. Over a period of time these regular payments will have a positive impact on your payment history.

Another form of debt management is an Individual Voluntary Arrangement (IVA). IVA is a formal agreement between you and your creditors, whereby you agree to pay back your debts over a fixed period of time (typically five years). An IVA is a legally binding contract and for the duration that it lasts, your creditors cannot take further action against you. It is usually initiated by an insolvency practitioner such as a lawyer or an accountant who will charge you a fee.

Impact of an IVA on employment – An IVA should not normally adversely affect your job, except in certain instances with professions such as; solicitors, accountants, company directors etc. You may not be able to practice in such professions, or have restrictions / conditions placed against you whilst the IVA is serving. A good way to find out if your job is impacted via an IVA, is to check the terms and conditions of your contract or check with your professional membership body, trade union, or HR department.

Is an IVA suitable for me? –You should qualify for an IVA if you have a set amount still to pay towards your debts. However, it is important to consider carefully before opting for an IVA and checking to see if there are implications for your profession, therefore we advise to get professional help when applying.

Contact Debt Support Service today. You can call us or chat online with our experts to get the right solution for your financial problems.

A positive course of action for anyone struggling with credit card debt may well be to seek debt management via professional means. Debt management is a clear and effective way to eliminate unsecured debts, such as credit cards, bank overdrafts and personal loans – essentially any debts which are not secured by collateral. Debt management is an informal agreement between you and your creditors to repay your outstanding debts over a fixed period of time. Debt management companies can help significantly with this process, and can be much easier than attempting to arrange one with your creditors yourself. They will help you to create a debt management plan that sets out a clear path for you to eliminate your debt.

Choosing the correct debt management program is key, as this will give you the best possible chance of successfully achieving your goal of financial freedom. If you find yourself burdened with more debt that you can manage, and you are not able to meet your minimum monthly repayments, your creditors will log this on your credit history. This in turn will negatively affect your credit score, making it more difficult for you to initiate a new loan or credit card and may also increase the interest rates you are offered on such loans. So, before you begin struggling with your financial situation, max out all of your credit cards and find it difficult to get further credit, it is time to seek out debt management plan UK.

Debt Management Plan UK – Allows you to make one monthly affordable payment to your DMP provider who can then distribute funds to your creditors. A provider will likely charge an affordable fee for such a service. Debt management plan UK is available for non priority debts. In plain terms, this is debt not secured by any collateral (such as via credit cards). The provider usually negotiates with your creditors to reduce or even possibly waive the interest you are paying on your debt.

Non profit or ganisations do exist who can ensure that all the money you pay into your debt management plan UK goes towards paying off your debts. If you choose a fee paying provider you should ensure that any organisation is FCA authorised and that they meet the industry standards. Some of the advantages of obtaining a debt management plan UK are listed here:

Counselling – The credit counsellors will provide initial counselling, going over your budget and debts, before relaying to you the options at your disposal. These counsellors have experience in mapping-out a debt management plan in a manner that your creditors can accept. They have long standing relationships with creditors and their working knowledge is invaluable.

Waived interest – A DMP provider liaises with your creditors to lower (or possibly even waive) any previously charged interest or fees. This will help you lighten your burden of debt and channel your repayments directly towards paying off your principal debt, thereby lifting you out of debt sooner.

Monthly payments – Making a single monthly payment to your DMP provider is much easier than keeping on top of a stack of bills from different creditors.

No frequent calls – By enrolling in a debt management plan in the UK, you are able to manage your unpaid debt with the help of the counsellors. This will in turn mean less phone calls from collection agencies and less stress next time the phone rings.

Debt Support Service can help you arrange a debt management plan UK to pay off your outstanding debts. We are a leading debt management company in the UK and we provide highly acclaimed debt support service. If you need help with your debt and would like someone to talk it over with – get in touch with us today by phone or live chat. You can also request a call back and our trained advisers will contact you and begin the process of resolving your financial problems!