Debt Management
Debt Management in London
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 £15,000 to a minimum of 2 different creditors, then a debt managment plan could be the right debt solution for you. We can help you set up a debt management plan, as well as work out exactly how much disposable income you are left with each month after deducting the necessary living essentials. To see what your disposable income is, simply print out our form Calculating Your Income and Expenditure - and follow the instructions.
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. You can add up your own budget by first adding up all household income. Then add up all essential expenses like rent, mortgage etc , then deduct the second amount from the first - you will be left with your disposable income. The easiest way to do this is with our downloadable form - Calculating Your Income and Expenditure. If you have a disposable income of at least £100 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 put your case forward to the debt management company offering the best deal, who will then start to take the neccessary steps to contact and liaise with your creditors.
Alternatively, to discuss debt management or any other debt solutions, please call 1Stop Money on 0800 012 4039 or fill in the online form.