So you are considering getting a Debt Management Plan are you? Want to know more about this type of Debt Solution?
OK well this guide will give you a good overview of what’s involved. You could also visit the debt help page to get in touch with an organisation who you can discuss your debts with.
Before taking on a Debt Management Plan, you should make sure that it is the right thing for you and your debt. Getting proper and professional debt advice is a must, because if a Debt Management Plan is not suitable for you, you could be in debt for longer than you need to be. The main aim when solving a debt problem is to get out of debt in the least possible amount of time.
When you are considering a Debt Management Plan, you need to think about whether it will fit your own circumstances. The reason I say this is because some types of debt cannot be included in a Debt Management Plan, and you would need to deal with those separately. So if you are looking for a solution for all of your debt, a Debt Management Plan might not be the best option.
Taking the First Steps
If you would like to explore the possibility of getting a Debt Management Plan then it pays to get advice from several organisations. So for example, you could contact the organisation recommended on this site, as well as shop around for others. That way you can compare what these organisations are saying and make a decision based on which one you are happiest with.
Discuss your debt situation with them and they will provide advice on which would be the best way for you to proceed. So if a Debt Management Plan doesn’t appear to be suitable for you, they will recommend other ways of solving your debts, because there are many other alternative options out there.
When you call up to ask for a Debt Management Plan, any good debt management company will make sure it is the best way for you to solve your debt problem. They do require some information from you to make the initial assessment though. This includes asking how much money you owe, the number of creditors you have and the types of debt you have. From that they can normally build up a good picture of your finances and work out how best to proceed.
It might seem a bit daunting talking to someone for the first time about your debts. However with that being said, they talk to people in debt all the time and so are used to handling things sensitively and compassionately. You needn’t worry about it, they are there to help you and that’s all.
Setting up the Debt Management Plan
When you take on a Debt Management Plan you will need to provide further information. You may be asked to supply the account numbers and details of all the companies you owe money to. You would also sign a form to allow the Debt Management company to act on your behalf. With this information the Debt Management company can then write to all of your creditors to make an offer of repayment.
Your end of the bargain is to make one payment to your Debt Management company every month and then they will split this up into the amounts to pay to each of your creditors. If you have selected a fee charging company then you will pay an amount to the Debt Management company as well, but this taken from the single payment you make.
Once your plan is up and running you should see things start to quieten down and you can feel more relaxed about your debt. Knowing that you have taken steps to resolve your debt problem will go a long way to making you feel more confident about the future.
If you would like to see both the good and bad when it comes to Debt Management Plans, please read this article that looks at the Pros and Cons of a Debt Management Plan.