Debt Consolidation with Debt Management
Debt Management consolidates all your debts in to ONE affordable monthly or weekly payment without further borrowing. This allows you to get out of debt by making repayments you can realistically afford.
What is Debt Management?
Debt Management is an informal arrangement between you and your creditors, negotiated by us on your behalf. We take details of your debts, income and outgoings, and provide proof to your creditors that you can’t afford current repayments.
You make one affordable payment to us, which we distribute to your creditors. Typically, the new payment will be much lower than your existing payments as it is based on what you can realistically afford.
So long as you have at least two debts , are struggling with existing payments, and can afford at least £80 per month towards your debts, you will qualify for debt management help.
Key Benefits
- Lower payments
Payments are based on disposable income once essential outgoings such as rent and food are budgeted for. Many non-obvious items can be included as essential living expenses, please contact us for full details. - One payment.
Less hassle; you pay us and we distribute payments to your creditors. - No need for creditors to contact you.
You can advise your creditors that Harrington Brooks are dealing with your debts and you may refer any correspondence from your creditors to us. - Flexibility.
If your financial circumstances change for the better or the worse, you may adjust payments accordingly. - No additional interest or charges
Often we can achieve to have additional interest payments and charges stopped, but this cannot be guaranteed. - No need to get involved in legal proceedings
Unlike an IVA, Debt Management is an informal agreement, not involving the courts nor requiring minimum debts. - Does not put your home at risk
Unlike a secured Debt Consolidation loan, you do not run the risk of having your home repossessed should you not be able to make payments.
Debt Management Advantages Over a debt consolidation Loan
- More room for negotiation later.
If you consolidate your debts into one loan with one creditor, you will typically be in a weaker position to negotiate should you fall in to difficulties in the future. - You’re not putting your home at risk with Debt Management.
If you take out a secured loan on your property, you’re increasing the risk of your home being repossessed if you fail to make repayments. - More likelihood of acceptance
If you have bad credit and/or multiple CCJs, you may find it difficult to be accepted for a loan, or only a loan at an unfavourable interest rate.
Debt Management Plans detailed here are provided by Harrington Brooks. For full details and fees involved, please visit HarringtonBrooks.co.uk/DebtManagement.