Debt Management and Consolidation

Debt Management is an informal process of negotiation with unsecured creditors to obtain a reduction in the repayment amount and / or a reduction in interest charges. The negotiation involves providing proof to the creditor that the individual is unable to meet all their contractual liabilities.

• You will not be charged for your initial enquiry
• You are under no obligation whatsoever
• All your details will be held strictly confidential

We will find an affordable payment for you, giving you just one cheque to write each month. Once we receive your payment, we request that your creditors freeze or reduce their interest charges and therefore agree to a new and often lower monthly payment. Where interest charges are frozen, the money we pay to your credit companies is taken off the debt rather than being used to pay interest charges. Please note that by commencing Debt Management you may default on contractual payments to your creditors. Any default may damage your credit rating, increase the amount owed or lengthen the duration of your repayment.

How do I know my debts are being paid?

We will apportion any payments received from you for distribution between your creditors based on how much each is owed. We will issue a statement showing how much each creditor will receive. This remains fixed unless your circumstances change. We will also issue a quarterly statement showing all transactions on your account. In addition to this, you will still receive your statements from your creditors.

Will this affect my credit rating?

When entering into a debt management agreement, you will be breaking the terms of your initial repayment agreement with your lender. This may have an adverse effect on your credit record. Due to time required arranging and distributing payments to creditors and delays in making first payment into the programme from clients, contractual payments to creditors may be missed.