How is MRA funded?

Unlike “free” or "charitable" debt management companies, we are not funded by the credit industry (i.e. the companies you may owe money to). We are funded by you, the client. The key advantage is that we are on your side when negotiating with your creditors and this can dramatically reduce the amount you pay to settle your debt. You will also enjoy lower monthly payments and a better quality of life. This is because we do not have to worry about pleasing your creditors to keep afloat.

As an MRA client, you will …

• Enjoy lower monthly repayments
• Get out of debt more quickly, with expertly negotiated settlements (usually within 36 months).
• Pay considerably less overall to clear your debts

See how much you could save with our Case Study below.

Why do free debt management companies perform so badly?

Because these companies are 100% funded by the credit industry (i.e. the companies you owe money to) there is an obvious conflict of interest.

Free debt management firms are focussed on getting the best deal for your creditors, not you. They often set themselves up as charities to appear to be on the consumer's side and enjoy the tax advantages this brings. There is also no upper limit on the salaries paid out to employees.

How much do MRA charge for debt management?

You will pay just 1.765% of your debt per year in fees. When you consider that part of your debt is likely to be written-off after 36 months and others charges frozen or reduced, you will almost certainly save money when compared to "free" debt management. You will also save a huge amount over using credit cards, which typically charge around 16% per year.

Case Study Comparison

Fees-based vs free debt management

When you pay a monthly management fee you will be personally looked after. We don’t offer just free debt counselling, our aim is to negotiate with your creditors a full and final settlement of the outstanding balance a.s.a.p. Most creditors will negotiate a full and final settlement usually after 36 months into a debt management plan.

See how much money you could save below.

	MRA fee charger	With No Fees
Total Debt	£15,000	£15,000
Monthly Payment	£147.05	£250.00
Typical Monthly Management Fee	£22.05	£0
Remainder Paid to Creditors	£125	£250
Time to Clear Debt	36 months	60 months
Total Fees Paid	£940.85 (including initial fee of £147.05)	£0
Total Fees Paid	£5,440.85	£9,000
Balance Outstanding After 36 Months	£10,500	£6,000
At 36 months an offer of 40% of the balance outstanding (£10,500) of the original debt is likely to be negotiated with the creditor and accepted as a full and final settlement	- £4,200
40% of outstanding balance of original debt is raised and paid off	£6,300
Total Cost of Debt	£11,740.85	£15,000
Savings Made Using MRA Fee-Charger vs. a "Free" Service	£3,259.15

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