Debt Management
Debt Management Plan
What is Debt Management?
Debt management can be a way of getting organised with your income and expenditure without borrowing and getting deeper into debt, by following an agreed debt management plan. Debt management helps you out of debt by allowing you to make affordable repayments.
How does a debt management plan work?
Once our team of Insolvency Practitioners recommends that a debt management plan is the best option for you, 1Stop Money then finds the debt management company offering the best deal, who will then negotiate with your creditors' on your behalf and provide the necessary evidence to prove you are unable to afford their current repayments, with a view to agreeing on a new amount. You then make regular payments to your debt management company, who in turn will distribute payments to your creditors on a pro-rata basis.
Who do debt management plans work best for?
If you have debts lower than £2,000 to a minimum of 2 different creditors, then a debt managment plan could be the right debt solution for you. We can help you work out exactly how much disposable income you are left with each month after deducting the necessary living essentials, as well as set up a debt management plan.
Debt Management Plans are ideal for people who want to pay off their debts effectively, and who have the discipline and the disposable income to make regular contributions to their debt.
How do I start a plan?
Initially, you will need to compile a personal budget sheet to see if you have enough disposable income, and how much. This is done by first adding up your entire household income. Then all essential expenses like rent, mortgage etc , are added up and this number is then deducted the from the first amount - what you are left with is your 'disposable income'. You can go through your expenses personally with a 1Stop representative who will work it out for you.
If you have a disposable income of around £200 or more and can afford to make regular payments to your creditors, then a debt management plan may be a good choice for helping you control your debt. If you have sufficient disposable income and your debt problem is not critical, then 1Stop Money will start to take the necessary steps to contact and liaise with your creditors.
For the best debt help in London and across the UK, please call 1Stop Money on 0800 012 4039 or fill in the online form.