Advantages of Debt Management

Debt Management has many advantages :

• We can ask creditors to freeze or reduce the level of interest on your debts.
• We can also ask creditors to write off part of your debt. This often happens if it is clear you are unable to pay the full amount over a reasonable period of time.
• You only make one payment per month.
• Debt Management has greater flexibility than an IVA. If your income reduces we freely can re-negotiate to bring your payments down to a comfortable level.
  
  If your income were to reduce with an IVA and your creditors did not agree to reduced payments, you could be forced into bankruptcy.
• You will no longer have to deal with your creditors. All communication is handled by your Debt Management Company.
• Debt repayments reduce to a level that you can comfortably afford. We look at all of the living expenses that the government says you are legally entitled to, to work out how much you can afford to pay. For example, if you have a pension scheme, you are legally entitled to keep paying into this.
• Debt Management is friendlier to your credit rating than an IVA or Bankruptcy. There is no stigma associated with it and no legally binding restrictions on what you can and can't do.

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