Debt Management

Debt Management

Debt management effectively gets you out of debt by allowing you to make repayments that you can actually afford. There are essentially two types of Debt Management programmes. Both are considered 'informal' arrangements.

Self Help Debt Management
This is where you contact all of your creditors, explain to each there is a problem with your repayments. You then negotiate a new monthly repayment directly with each creditor. The advantage is there is no Debt Management fee out of the repayment, therefore your creditors will receive all the money you can afford to pay.

The disadvantage is this can be a very stressful and time consuming exercise, made all the more difficult when the number of creditors are multiplied, and when you do not have the experience to negotiate with the creditors.

Commercial Debt Management Plans
This is where you contact someome like MFA in Fareham, notify them of all your creditors' details and respective debts to each creditor. MFA will then negotiate with your creditors' on your behalf and provide the evidence they require that you are unable to afford their current repayment levels.

You will then have one single lower monthly payment that you can actually afford. This is paid directly to the Debt Management Company who will distribute your monthly payment amongst your creditors on a pro rata basis.

Normally interest payments stopped upon entering in to a debt management program.

For further information contact MFA Chartered Accountants and Insolvency Practitioners based in Fareham, Hampshire and covering , Portsmouth, Southampton, Havant, Locks Heath, Petersfield, Waterlooville, Horndean, Titchfield, Lee-on-Solent, Emsworth, Park Gate, Warsash  and all surrounding areas.