What are the benefits of debt management?

11 May2021

For some borrowers, a debt management plan can be the best way of lowering monthly repayments they can no longer afford to a manageable level.

In the current climate, when many people are dealing with wage freezes, increasing living costs and squeezed disposable incomes, debt problems are increasingly becoming a reality for many borrowers.

So, if manageable borrowing has turned into unmanageable debt, how exactly could a debt management plan help you get back on your financial feet?

Monthly payments you can afford

Having unsecured debts, e.g. personal loans, catalogue debts and store cards, that you can no longer afford to repay every month can put you under a lot of pressure. The point of a debt management plan is that your monthly payments will be reduced to a manageable level, which could take a lot of stress off you.

If your lenders agree to a debt management plan, you'll make one payment every month that will fit affordably around all your essential outgoings (e.g. rent/mortgage, food and Council Tax) - so you shouldn't be paying any more than you can safely manage every month.

You can find out more about debt management plans on this page.

A clear path out of debt

Once you enter a debt management plan, you can be confident that you'll be repaying your debts at a pace that you can manage.

As you'll be making smaller monthly payments, you'll be repaying your debts over a longer period of time - and although this could affect your credit rating and cost you more overall, you'll have the peace of mind of knowing that you're paying back everything you owe at a pace that's comfortable for you.

What's more, your lenders may also agree to freeze interest and charges on your unsecured debts - in which case you won't have to worry about your debts getting any bigger while you're repaying them.

Our debt solution finder could help you decide if a debt management plan is suitable for you.

Expert help

If you decide to set up a debt management plan with a professional debt management company, you'll be given expert help and guidance to get your plan up and running.

Here at Think Money, we have almost 20 years' experience helping struggling borrowers get on top of their debt problems with debt management plans.

One of our advisers will discuss your financial situation with you, and if we think a debt management plan is ideal for you, we can negotiate lower payments with your lenders - and you'll know you're in expert hands.

Once a debt management plan has been agreed, we'll deal with your lenders on your behalf - so you won't have to worry about regular phone calls and replying to letters - and we'll only be a phone call away to answer any questions you have throughout the process.

You could speak to one of our advisers today to find out if debt management is right for you.

Try our debt solution finder

Answer a few simple questions and find out which debt solutions could help you, based on your circumstances.

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Please remember, this is just an information tool. We would always recommend you speak to a debt advisor for the most appropriate way to resolve your debt problems.
We'll give you an on-screen recommendation and call you. One of our advisors will be in touch to answer any questions you may have about your results.
Your privacy is important to us. All correspondence is held in the strictest confidence and we will only request information required to find your debt solution.

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Tags: debt, debt management, debt management plan, loans

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