Debt Management Plan

Get out of debt at a rate you can afford

What's a debt management plan?

It's a new repayment plan designed to make your debt repayments and other living costs easier to afford.

Reduce your payments

Your debt payments will come down to make sure you can afford all your other monthly costs too

Freeze interest & charges on your debts

Lenders often freeze interest & charges so you can make some real progress on your debts

We'll deal with your lenders for you

We'll show them why lower payments are the best way for you to repay your debts. We'll also handle paperwork and phone calls

To find out if debt management could help you, use the Solution Finder on the right, or call us on 0800 505 3848.

Find out if you qualify

Answer a few questions and we'll call you to discuss your options

£2,000

Approx. how much money do you owe?

£,000

£70,000+

Are you a homeowner?

Yes

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Frequently asked Debt Management questions

How does debt management work?

A debt management plan is an agreement with your lenders - we'll figure out together what you can afford to pay each month and show them that accepting lower payments is the best way they can help you repay the debt.

You'll make just one payment to us every month, and we'll pay each creditor a fair amount, based on what you can afford and how much they are owed.

Your new monthly payment will be based on what you can afford after all your priority bills have been paid.

Is debt management right for me?

If you can't afford your monthly payments to your unsecured debts, debt management could be just what you're looking for.

However, debt management won't be able to help you if:

you only have secured debts (like a mortgage or secured loan), or
there's no way you can commit to regular (smaller) monthly payments, or
there's no way you can repay what you owe in a realistic timeframe, or
you can afford the payments you first agreed to make.

How much will I pay?

That depends. The idea of debt management is that you pay only what you can afford towards your unsecured debts, so it's different for every person.

Your new payments will be based on what's left over after you've paid for all your essential living costs such as rent/mortgage, utility bills, travel and food.

If you like, one of our advisers can take a look at your finances and give you an idea of how much you'd be likely to pay if you entered a debt management plan. This won't commit you to anything - you're always welcome to call if you have any questions.

Is debt management the same as a debt consolidation loan?

Not at all.

A debt consolidation loan is what it says - a loan that you can use to repay your debts. This is exactly what some borrowers are looking for, but it won't necessarily help if you're in real trouble with your finances (or if you can't find a lender who'll lend you money).

A debt management plan doesn't involve borrowing any more money. It's about repaying what you already owe. On the other hand, like a debt consolidation loan it can reduce your monthly payments and make it a lot easier to repay what you owe.

Why would my lenders accept lower payments?

They don't have to - which is one reason working with us could be a good idea. As part of the Think Money Group, we've been helping people with their debts since 1993, so we've built up excellent relationships with all the UK's major lenders.

If a debt management plan is the only realistic way you'll be able to commit to repaying your debts in full, it's quite likely your lenders would be prepared to consider a reasonable offer.

After all, they're also looking for a way to get the money repaid. With us on your side, (helping you and your lenders reach an agreement) it could be less stressful than you think.

Which debts can you help me with?

Your debt management plan can include all your unsecured debts: credit cards, store cards, overdrafts, unsecured loans, etc.

And since your payments towards those debts will be lower on a debt management plan, you should be able to afford all your other payments every month, from your mortgage / rent payment to things like insurance, petrol, food and so on.

Could a debt management plan help me?

If you can't afford to repay your debts as fast as you agreed to, a debt management plan could be the best way for you to get out of debt. Talk to one of our advisers and we can go over your finances together.

If it looks like debt management is the best approach for you to take, we can talk to your lenders. We can show them that you can't afford your payments as they stand - but that you could afford to repay your debts if they accepted smaller payments that don't take up money you need for things like rent / mortgage payments, gas bills and other essential bills.

In other words, we'd do our best to show them that agreeing to those lower payments really is the best option for them as well as for you. And we'd explain that freezing interest and charges on your debts could be a great way for them to help you repay what you owe.

How debt management works

Debt management can give you a chance to repay your debts more slowly, so you're not stretching your finances too far every month. It can also make it a lot simpler to get out of debt, since we'll take care of a lot of things for you.

We'll talk with your lenders and ask them to accept lower payments and to reduce or freeze the interest and charges on your debts. We can't guarantee they'll agree to anything, but out priority is keeping your repayments affordable and working with your lenders to ensure that as much as possible of each payment you make goes towards reducing the balance.

Once your debt management plan has started, you'll make one payment to us every month. This will be based on what you can afford alongside your other living costs, such as bills. From this, we'll pass on an agreed amount to each of your lenders, ensuring they each get a fair share.

We'll also handle all the paperwork, letters and phone calls - and tell your lenders they can contact us if they have any concerns, rather than phoning you every time.

We'll review your plan regularly. If your circumstances change, our advisers will be there to help you. If it looks like you can't afford your debt management payments anymore, for example, we can go back to your lenders and talk to them about accepting lower payments. Likewise, if your situation improves, you can clear your debts sooner by increasing your monthly payments.

Downsides of debt management

Although lenders often freeze interest and charges for people on debt management plans, they don't actually have to. If they don't, you could end up paying more in interest and charges in the long run, since your debts are taking longer to repay.

Finally, joining a debt management plan does mean you're not repaying your debts the way you said you would when you borrowed the money. This can affect your credit rating.

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