If you are looking for a debt management solution you may have heard about debt management plans and wonder how they can help you to deal with your debt. For personalised advice about our debt management solutions, please contact us now.
A Debt Management Plan is an informal debt management solution which allows you to make a reduced payments to your unsecured creditors. The payment that you need to make will be determined by your own set of unique financial circumstances, such as the amount of income that you have, living costs and the amount of debt thqt you have. From this information a debt management compay, such as Harrington Brooks, can determine how much you can afford to make to your debt management solution.
There are a number of advantages with a debt management plan. For example, you get to make one single payment which will cover all of your unsecured debt. This should make it easier for you to manage your finances and budget accordingly. As this type of debt management solution is not legally binding between you and your unsecured creditors, should you wish to pay off more of your debt and become debt free quicker – you can!
As with any type of debt management solution, it makes sense that you also understand any disadvantages which may occur. With a debt mangement plan you will be making a reduced payment to your debt, therefore it will take you longer to repay the debt in full. But remember that your debt will be more affordable to you on a monthly basis.
There are a number of debt management solutions which are designed to make your debts more affordable to you, such as an IVA or debt consolidation loan. The right debt management solution is dependant on your financial situation so always seek expert debt advice before deciding upon a debt solution.