Debts between £5,000 and £15,000

What you can do if you have debts between £5,000 and £15,000

A debt management plan is a possible solution for unsecured debts ranging between £5,000 and £15,000. 'Debt Management' isn't legally binding on you, the debt manager, and your creditors making it an informal process. As such you have no legal protection against your creditors.

The debt manager offers a reduced monthly payment to your creditors, for which they typically charge a fee of circa 20% of your payment. Although this can diminish some of the creditor pressure, it should only be taken in cases where other options are either unavailable or inappropriate, because of the serious disadvantages, as outlined below.

• The debt management plan only finishes once all your unsecured debts are fully repaid. This could take a very long time. Agreements often continue for tens of years.
• Only a minority of creditors will suspend interest and charges. So interest will keep adding up and if your monthly payments can't offset the interest, your debt will grow making the process never ending
• Additional expenses could be added to the debt, such as the debt manager's fees and interest and charges, which increases the time period of your repayment plan even further.

Therefore a debt management plan must be approached with caution and considered solely as a short-term solution.

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Creditor line: FREEPHONE - 08000 435437