Advantages:
Your creditors are able to once again see regularity of monthly payments being paid to them by our appointed debt management firm.
Lower payments.
Payments are based on disposable income once essential outgoings such as rent and food are budgeted for.
One payment
Less hassle, you just make one payment to the debt management company and they will forward payments to your creditors
Flexibility.
If your financial circumstances change for the better or the worse, you may adjust payments in the debt management programme accordingly.
Availability. It is available to tenants and people still living at home.
No need to get involved in legal proceedings
Unlike an IVA, debt management is an informal agreement, not involving the courts nor requiring high minimum debts or repayment levels
Does not put your home at risk
Breathing space.
By reaching an agreement to make lower monthly repayments it can create breathing space from your creditors while you concentrate your efforts on perhaps trying to find a new job, recover from illness or find other methods of trying to increase your earnings.
Accepts smaller debts.
It can be used for debts which are less than £15,000 and therefore wouldn’t qualify for an IVA.
Your credit rating will not suffer as badly as if you had taken an Individual Voluntary Arrangement or file for bankruptcy.
You can withdraw from the scheme at anytime. Therefore it can be used just until your financial situation improves again.
