Debt Management

There are numerous companies advertising in newspapers and on the Internet offering debt management services. This is where the debtor makes a monthly payment to a company who will negotiate a repayment plan on their behalf. What many people do not realise is that in a lot of cases debt management does not stop interest running, or freeze the level of debt. The debt management company will attempt to negotiate an agreement with your creditors at a level that you can afford. However, before you enter into such an agreement you need to find out whether or not the interest on your debt is frozen and whether you are still having to repay the full amount of the debt on any accrued interest.

Over a number of years at Just-Debts we have seen numerous people who thought they were reducing the level of their debt when in fact all they were doing was servicing the interest and paying fees.

The position in debt management is to be contrasted with that of an Individual Voluntary Arrangement where interest is frozen on unsecured debt and in many cases a substantial part of the debt will be written off. IVA’s are generally for a three to five year period so you can see an end to your financial problems. At Just-Debts we give you the facts and let you decide what is best for you.

Before you enter into a debt management plan ask the following questions:-
1. Will interest still be charged on my debts
2. How long will it take for my debts to be repaid
3. Are my creditors writing off any of my debts?

Before you make any decision regarding debt management ring Just-Debts on free phone 0800 915 3950 for free debt advice.