Find out if you qualify for debt management
- Place all your unsecured debts together in one place - any secured debts like your mortgage won't be included and must be paid separately
- Let professionals deal with your lenders for you - your lenders don't have to accept lower repayments but many do, as well as freezing interest or charges.
- Repay your unsecured debts at a rate you can afford - although making smaller repayments may mean it takes longer to fully repay your debt, it costs you more in the long run, and your credit rating is affected.
Request a callback and find out if debt management is the right option for you, out of all the different choices available.
How do I qualify?
If you have unsecured debts like credit cards, personal loans, store credit, overdrafts, catalogue debts or utility arrears - and you're struggling to repay them, or you have fallen behind with your repayments - debt management could be suitable. Other debts, like a mortgage or loans secured against your home, won't be covered in any debt managment plan. You'd have to make sure you make these payments yourself.
You do not require a minimum or maximum amount of unsecured debt to qualify for debt management. We do not put a limit on the level of unsecured debt we will accept onto a debt management plan, because the right debt solution really depends on your ability to repay your debts.
We try to help everyone who comes to us with the most suitable debt solution, so we might recommend a different debt solution if we think it would help you more.
We do not place a threshold on income either. We can help people who are employed, unemployed or retired, as well as people in receipt of benefits. What we do ask is that you have a regular and reliable income so that we can negotiate a repayment plan with your lenders that you could stick to.
Your lenders don't legally have to accept your repayment plan, but we will negotiate on your behalf, trying to find a solution that's fair and that everyone can accept.
We could also help if any of your unsecured debts are in arrears, or have gone to debt collectors or bailiffs, or if you are party to a County Court Judgment (CCJ).
What if I don't qualify?
If your debt is very large and you can't repay it within a reasonable amount of time with a debt management plan, then insolvency could be an alternative. We can provide formal insolvency arrangements if that's what you need. This could lead to some (or even all) of your debt being written off. But, you may also have to use any equity in your home to help repay the amount you owe - or you could actually lose your home.
If you can comfortably afford your repayments at the moment, then you wouldn't qualify for debt management, although a debt consolidation loan could be an option. With debt consolidation, all your debt payments are combined into one payment per month… from one lender… which is often lower than all your separate monthly debt payments added together. This may cost more in the long run, because you are paying more slowly with interest building – and your home could be at risk if your loan is secured against it.
We wouldn't recommend debt management if you're not struggling, because lenders won't accept lower payments unless you actually can't afford your original payments. Plus, lowering your repayments does affect your credit record for up to six years - which can make it difficult or more expensive to obtain credit. So, we only recommend debt management for people who really need debt help. Lowering your repayments will also take you longer to repay the full amount.
More information and reading
The debt experts at Gregory Pennington have written guides to do with everything that happens on a debt management plan, so you know what to expect.