Debt management UK or debt management in UK is the process of refinancing outstanding debts through single monthly payment. If done effectively, debt management can help in successful repayments of credit and ward off bankruptcy. Through debt management plans in UK, an affordable and convenient payment scheme can be chalked out.
The debt managers in UK perform the following functions:
Studying and analyzing the financial problems of the debtors
Chalking out a monthly payment amount in accordance with the repayment capacity of the debtor
Preparing a financial statement or budget plan in order to avoid future debts
Negotiating with the creditors of their clients and arriving at a conveniently low payment amount
Distributing the full monthly payments of their clients among their creditors
On many occasions debt management services of UK come for free, that is, not a single pound is required to be spent on administration and set-up fees. While managing debts in UK, there can be two different solutions in case of high and low debt levels.
In case of high debt levels, the Individual Voluntary Arrangement (IVA) in the UK can be of great help.
The facilities that come with IVA are as follows:
One can be free of debts within five years
The amount of debt would not increase
Interest charges are eliminated
Repayment in accordance with affordability
Outstanding debts are written off
Legal protection can be obtained against creditors
For lower debt levels debt management programs in the United Kingdom help the borrowers in the following ways:
The debt management arrangements are informal and flexible for both long and short terms
Debt amounts, as low as 1,000, can be effectively managed
The single monthly payments are convenient and affordable
The debtors can deal with creditors indirectly through debt management companies
The UK Debt Management Office is an Executive Agency of Her Majesty’s Treasury entrusted with the duty of cash and debt management for the government of England.
Some of the top debt management companies of UK are as follows:
DCM Money Solutions
Be Debt Clear
Last Updated on : 9th July 2013