A debt management plan is a way of repaying your unsecured creditors. You make a reduced monthly payment to your debt management plan and we distribute the payments to your creditors on your behalf. The accounts remain with your creditors, we make arrangements with them to accept the reduced payments and we also negotiate with them to stop interest and charges on your accounts. You keep paying into your debt management plan until your debts are repaid in full and the accounts can be closed.
You could be eligible for a debt management plan if:
- You have one or more unsecured debt.
- You are paying more than £100 per month to your unsecured creditors.
- You are struggling to make all your payments or you debt is getting bigger each month.
Is a debt solution the best option for me?
The short answer to this question is, if you fit the criteria then YES. Unless you have a lump sump of savings or a friend or family member is willing to clear your debts then you will have to come to an arrangement with your creditors to restructure your repayments.
A debt solution such as a debt management plan is not a magic solution, they do have their drawbacks but when they are suitable for you they can drastically improve your financial and personal circumstances. We will only recommend a debt management plan to you in the following circumstances:
| 1. | You have large shortfall in your disposable income because you are repaying unsecured credit. |
| 2. | You are missing payments to priority debts such as your mortgage/ rent and utilities. |
| 3. | You are incurring excessive interest and charges due to missed payments and arrears. |
If you are in debt and do not seriously consider a debt solution you are very likely to incur additional debt because you will need to apply for further credit to keep up your repayments or because you are getting charged by the creditors for your arrears. Being in a debt management plan will ensure that the debt is kept under control because we make arrangements with the creditors and get interest and charges stopped or reduced.
By taking advantage of Refresh Debt Services you only need make one affordable payment each month, so why not get in contact with one of our advisors now for more information call 0800 121 48 63. Our debt management advice is completely confidential.
