Debt Management Plans: A Debt Management Plan is an agreement (not legally binding) between you and your creditors. You agree to make an affordable monthly repayment towards your debts and interest until they are repaid. They may be appropriate if you have a temporary financial problem or if you cant or don't want to re-mortgage. The Debt Management Plan is set up by us and managed by an independent company.

Advantages of a Debt Management Plan:

  • You only require to pay the agreed monthly payment to the Debt Management Company who will then distribute it each month to your creditors
  • You have very little dealings with your creditors as all correspondence is handled by the Debt Management Company.
  • The Debt Management Company will provide you with regular financial statements showing where your payments are made.

Disadvantages of Debt Management Plans:

  • They are not legally binding and creditors can continue to add interest and pursue you through the courts.
  • They can prove to be expensive and be poor value for money.
  • We will only refer our clients to Debt Management Companies who provide good value for money, treat our clients fairly and who adopt an ethical approach.

For FREE advice or to arrange a FREE home visit, complete our simple online form

OR

Call us FREE on 0800 011 2322

and one of our advisers will be happy to discuss your personal circumstances with you.

 

© > DAS The Debt Advisory Service (Scotland) Ltd 2006