Debt Management
Debt management is a means of keeping creditors at bay until a better solution can be found. It can be appropriate as a means of settling debts if the total owed is small (less than around £10,000), and the debt can be repaid in full within a few years.
Get Advice before Agreeing to Debt Management
There are many firms offering debt management schemes for far larger sums than this, but care should be taken in dealing with many of these. Often, the debt management company will retain a very high proportion of what you pay (up to 50% and sometimes more if you cannot continue the payments agreed) and the creditors do not have to agree to accept less than their total debt. Also, you can often find that the scheme means that you pay over a very long time period, and that the amount you pay can go up over the years. You will therefore not have a clear amount you know you have to pay and a fixed time period for payment.
We do have a debt management scheme for those clients who can benefit from it, but normally there is a better and cheaper way. Sometimes it can be a good strategy to set up a debt management scheme for a short period, then convert to a more stable and secure method of dealing with your debt after your circumstances permit it (for example an IVA or a single payment informal arrangement).
If debt management is the best or only route for you at the moment, your circumstances may change over time. Abacrombie & Co will keep in contact with you and will propose a better solution as soon as you are in a position to take it.
For more information call us on 0800 694 1400 to arrange a FREE, NO OBLIGATION consultation with one of our experienced specialist consultants.
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