If you make monthly repayments to multiple creditors, one option is to apply for a debt consolidation loan. The principle behind this is that you borrow a large, lump sum to repay your creditors and are then left with one creditor and one monthly repayment. The idea is that the repayments on this single, larger loan will be lower than the sum you are currently paying. For instance, if you have four different credit cards you might be paying an average interest rate of 16.9%. It is possible to get a credit card debt consolidation loan for the combined total. The interest rate on that might be about 9.9%. Thus, making a saving on your monthly repayment.

A debt consolidation loan can help many to reduce their payments for credit cards, loans, hire purchase, etc. It works very well if you can easily afford the repayments and are just looking for a way to simplify things and bring down the interest rates.

However, there are many people that struggle to meet the repayments each month. Some of these even find that their outgoings each month exceed their income. For these people, a debt consolidation loan is probably not the answer. If a person is in debt, taking out another loan to pay their other loans is not the answer. A small reduction in their monthly repayments will not make a significant difference in allowing them to break out of debt. In cases like this a debt management plan may be more suitable. This will also consolidate all your repayments into a simple monthly payment but it does not involve taking out another loan.

What is a Debt Management Plan?

Debt Management is a system to help those in debt become debt free. Our Debt Management Plan is a simple, systematic way of dealing with your debts. Not only can it reduce your repayments but is also takes the stress of dealing with your creditors away and can stop them from taking legal action against you.

We operate a 'single payment' plan whereby our clients pay us a single, monthly fee and we then distribute this between each of their creditors. This means all your debts are consolidated into one single, affordable payment. Not only are they consolidated into one monthly payment, in almost all cases we can reduce the total amount you pay each month by up to 75%. This is due to the fact that your creditors know you have a debt management company working on your behalf and we can work on your behalf to get the creditors to lower or freeze your interest rates. Also, you no longer have to feel harassed by your creditors; from the day you sign up with us, we will handle all communication with your creditors.

The simple payment you pay is based on your income and expenditure. This means that legitimate living expenses such as mortgage, phone and food are removed from your income so you only pay what you can afford.

Who are we?

We are Office of Fair Trading registered and are licensed debt adjusters. We are also data protection registered. This means that we are qualified to give quality, confidential debt advice and credit counselling. We have an experienced team and we pride ourselves on providing quick and effective debt management solutions. We operate on a national basis throughout the UK. We deal with debts ranging between £3000 and £250,000.

Next step?

If you think you need debt management, or if you are still not sure whether you want a debt consolidation loan or a debt management plan, please contact us. We offer free debt advice and are qualified to give confidential credit counselling. We look forward to assisting you.

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