Those struggling with unmanageable amounts of debt and cannot afford to meet their monthly debt repayments may be looking to find a suitable debt solution to help ease this burden.
Debt management can reduce the debt repayments that you need to make on a monthly basis, which is why many people who struggle with their unsecured debt repayments consider debt management plans as an option. This type of plan involves a debt management company, such as Harrington Brooks negotiating with your unsecured creditors, and get them to agree to you making lower monthly repayments at a rate that you can afford.
Debt Management Plans are tailored to your own personal circumstances, therefore the monthly debt repayment that you make should be at a level that you can after all your essential expenses, such as utility bills, mortgage or rent payments, have been taken into consideration.
Debt management can help to reduce debt repayments as you only have to make a single payment to your plan which will cover all of your unsecured debt. Therefore there are no multiple debt repayments that you need to make; just one debt repayment to the debt management plan. From here the money will be distributed between your creditors as agreed.
Although debt management will reduce debt repayments, you will still have to repay the debt in full as there is no element of debt relief. Some of your creditors may agree to freeze or reduce interest and charges, but this cannot be guaranteed so you should be aware that you may have to pay off your debt for longer.
An advantage of a debt management plan over other forms of debt solutions is that a debt management plan allows you to benefit from smaller monthly payments without the need for any further borrowing. This means that it could be a suitable way for someone looking to lower their monthly debt repayments if they have been rejected for a debt consolidation loan.
If you are looking for a form of debt reduction that can reduce the amount of debt that you need to repay, there are alternate debt solutions. For example, with an IVA (Individual Voluntary Arrangement) you only make affordable payments to your debt for a typical period of 60 months and, on successful completion of the IVA, any unpaid debt will be written off. It is essential that you seek professional IVA advice as not everyone is eligible for an IVA.