What is Debt Management?
Affordable debt repayments. Plus all interest and charges are requested to be frozen.
Debt Management is a debt plan used to manage your unsecured debts into one affordable monthly payment. Debt Management involves negotiations with your creditors to often reduce your monthly payments into a more manageable payment.
How can Fresh Finance help?
Fresh Finance connects you to a partner company who are professional debt management experts, who will negotiate with your creditors on your behalf to lower your monthly payments. If they manage to agree lower payments to your creditors then you in turn make one monthly payment which they distribute evenly to your creditors. If you are accepted onto their debt management plan then your monthly payments will be reduced to level that is affordable to yourself. Once your creditors are paid regularly, you will receive a receipt confirming the amounts paid to them. Once your creditors recognise you are entering a debt management plan, they are usually willing to extend favourable terms to you. Your creditors will want to avoid the expense of declaring you bankrupt or having your account turned over to a debt collection firm.
The key advantage is having one affordable monthly repayment to make which they then distribute to your creditors on your behalf. They will handle any communication between your creditors and yourselves, taking away the hassle of dealing with creditors. Once your primary living expenses have been calculated in to your financial statement, you only pay what you can afford. This way, you can still pay those important bills and they look after the rest for you.
A Debt Management plan is an informal arrangement meaning there are no contracts to tie you in, so should you receive a windfall of cash or have a family member help you out, then you may are free to end the plan, though the majority of clients tend to stick with the plan until all their debts have been cleared.
Am I eligible?
- Struggling with repayments on debts such as credit cards and loans?
- Your unsecured debt is greater than £2,000
- You can afford to pay more than £80 per month towards your debts
Key Facts about Debt Management
- If you do decide to enter a debt management program your credit rating could be affected. If you are already struggling with your repayments then your credit rating is likely to be poor.
- Creditors are not obliged to agree to a Debt Management Plan nor freeze interest and charges. Sometimes rescheduling your Debt payments can lead to an increase in the total sum repaid and can extend your repayment period. Their advisors shall advise you an estimate for the total repayment period and length of time for the plan subject to your creditors accepting the arrangements.
- Failure to keep up your repayments once a repayment plan is set may result in arrangements with your creditors to be broken. If you feel you are struggling with your arranged payment then please call immediately and they shall review your repayment plan and see what options are available to yourself.