Manage your debts
into one simple monthly payment
If you're struggling with multiple debts and are looking for a simple way to manage your finances and arrange a monthly payment plan tailored to your needs, then a Debt Management Plan could be just what you need.
We at Money Expert arrange for you to pay one simple payment each month which we'll distribute among your creditors.
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How will a debt management plan help me?
A Debt Management Plan will help you manage all of your current debt by working out a monthly payment plan designed specifically to fit with your financial means.
By consolidating your payments into one, affordable monthly payment, you can relieve yourself of the pressures of having to pay back multiple debts at once. Generally, though not always, your creditors will freeze the interest and penalties on your debts so that your reducing your monthly payment doesn't have significant adverse effects in the long run on the amount you need to pay back.
With a Debt Management Plan, you can take control of all of your current debt without needing to take out any more credit, as you would with, say, a debt consolidation loan
Applying for debt management
Applying for a Debt Management Plan is easy with Money Expert. Simply fill in the form and we'll start by offering debt management advice based on your situation.
From there we can set up a Debt Management Program for you, involving one simple monthly payment, tailored to fit with your disposable income. Our advice requires no obligation from you, and could set you up to start taking control of your finances within minutes.
Pros and cons of Debt Management
Debt Management: Reduce your monthly payments
- Clear your debts with one affordable monthly payment which is based on what you can afford
- Take control of your debts without another loan and further increasing your indebtedness
- In most cases creditors stop interest and penalty charges whilst you repay your debts
- Repaying debts over a longer period may increase the total amount to be paid
- Your credit rating will be affected for 6 years which may affect your ability to obtain credit in the future
- Debt Management is an informal agreement creditors may still pursue default actions and creditors may not agree to stop interest and charges
The Debt Management Process
Contact Money Expert for no obligation debt advice
Here at Money Expert we're committed to helping people escape the control that debt can have over their lives. As such, we offer Debt Management advice and services to anyone who needs it. First and foremost, head on over to our Debt Management application page and fill in the short form.
Receive debt management plan built around your individual needs
The idea of a Debt Management Plan is that the monthly payment figure settled on should be one which fits perfectly within your means; so that you pay off as much as you can afford each month and not more.
In order to reach this figure, Money Expert will conduct a financial review with you by going over your income and expenditure and working out how much you can afford to pay. From this, a monthly figure is agreed upon between us and you.
Simplify your debts into one smaller monthly payment
Having conducted a financial review, and tailored a Debt Management Plan to your means, you can begin to pay off your debts. Each month, you pay the agreed amount which is then distributed among your creditors.
As this monthly rate will be lower than what you are currently paying, you will be in debt for longer and may end up paying back more due to interest. However, a Debt Management Plan remains a fairly popular solution to the problem of multiple debts if you want to avoid declaring bankruptcy or taking out any further loans.
Fees For Setting Up A Debt Management Plan
If after your initial discussion with one of our advisors you feel a debt management plan would be the best route for you, your case will be referred to Immediate Financial, our trusted business partners to set things up. On our standard debt management plan you will pay an initial fee for setting up your plan which will usually be the first two months payments. From the third month until the end of the plan you will be charged a small monthly fee of 17.62% of the agreed monthly payment which is subject to a minimum fee of £30.00 per month.
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What our debt management fees cover
Your initial fee payable to Money Expert is in respect of the following services; assessing your financial situation and preparing your file, negotiating with your creditors and obtaining balances and reference numbers, arranging for a courier to collect your documents, providing a financial wealth check on all your existing utility bills, providing an in-house insurance advisor service, providing a dedicated client liaison officer to assist with any queries and setting up the plan with Immediate Financial. The monthly management fee payable to Immediate Financial from your third month is for the day to day running of your account, dealing with queries from you and your creditors, dealing with your post, distributing payment to your debts and carrying out periodic reviews.
The Benefits of a Debt Management plan.
The main benefit of a Debt Management Plan is that it allows you to pay off all of your current debt much more easily and while still managing to maintain a normal standard of living. Generally, the length of time that you are in debt will increase, but the impact the debt has on your daily life will be reduced significantly.
As mentioned above, another significant benefit of a Debt Management Plan is that it is one of the few debt solutions which does not require you to take out any more credit of any kind. While taking out another loan can be helpful, as with a Debt Consolidation Loan, many see a Debt Management Plan as a more prudent option, and would rather escape debt altogether than take out one loan to pay off others.
While a Debt Management Plan and its conditions are not legally binding unto your creditors, they will still generally stop any interest or penalty charges while you are repaying your debt. This means that extending the amount of time you spend paying back what you owe should not put you at much (if at all) of a disadvantage in terms of the amount you actually pay back.
Disadvantages of a debt management plan cases
Customers join a debt management plan when they can no longer afford their contractual monthly payments to their creditors. Many people who come to us will already have missed payments and adversely affected their credit file. When we renegotiate payments to a level you can afford it is likely that you will have defaults placed against you which will affect your credit file for six years making it harder to obtain credit even when your debts are cleared.
When a creditor does not receive the contractual payment they may put interest and charges on your debt. In the majority of cases we will negotiate with creditors to freeze any charges. However this cannot be guaranteed and in some cases creditors will continue adding to the debt. We will always endeavour to stop this when it occurs.
By paying reduced payments to your creditors it will take you longer to repay your debt. We will always strive to give you a clear estimate of the likely timescale of your plan.
Is Debt Management Right For Me?
If you are looking to pay off multiple debts without drastically changing your lifestyle and would rather not take out an extra loan to do so, then applying for a Debt Management Plan with Money Expert is likely to be the right move for you.
In order to qualify for a Debt Management Plan, you must satisfy the following criteria:
- You must be indebted to at least two creditors
- This debt must be to the value of at least £2,500
- You must have at least £100 available income each month after any bills.
- Your disposable income must be lower than your contractual payment
If these points apply to you, and you are looking for a way to take control of your debt, then we'll make sure we set up the best Debt Management Plan we can for you.
Frequently Asked Questions
Are there debt management solutions available for people with bad credit?
You should still be able to apply for a Debt Management Plan if you have a bad credit rating, so long as you still have the appropriate level of income. Your Debt Management Plan will however most likely show up in your credit history for a minimum period of six years and be seen as a negative point by any potential future creditors, making it more difficult for you to get a loan or credit card in the future.
Will MoneyExpert charge for debt management advice?
Yes, Moneyexpert charges fees as explained in our Terms and Conditions . However, we do not charge for the initial call where we provide you with an assessment of your current position, advise on whether a debt solution would be suitable for you, and if so which product would be most appropriate.Debt Management Fees
Is a debt plan legally binding?
A Debt Management Plan is not legally binding, and so your creditors are not required by law to freeze your interest or any penalties you may incur. However, because of our reputation and experience, we are more often than not able to negotiate to have interest rates frozen.
How many creditors will my plan cover?
There is no set limit to the number of debts a Debt Management Plan can cover, but the details of each case are worked out on a case by case basis. Therefore, if your income is vastly disproportionate to the amount you owe, you may have trouble getting a plan agreed upon.
Am I obliged to enter into an agreement after receiving advice?
No, you are not obliged to enter into any contract or agreement until you choose to. Our initial advice comes with no fees and no obligation required.
Can I change the amount I am paying each month?
Yes, the amount you pay will be calculated as the difference between your income and what you need to live on each month. The difference (called your Disposable Income) is what you will be expected to pay each month. This can change if your income or living expenses change, and in any event will be formally reviewed with you at least annually.
What if my financial circumstances change?
If your financial circumstances improve, then you can either pay off your debt straight away (if this is possible), or you can contact all parties involved and cease your Debt Management Plan, returning to your usual monthly payments.
Why choose Money Expert over other debt management companies?
Money Expert has a long history in Financial Services and is a trusted provider of services having helped millions of customers find the right financial products for them, including Debt Management services and advice, with a vast customer base and a high level of experience and respect in the industry. We judge ourselves by our results, and our customer-orientated attitude.While debt management plans are available from free and charitable organisations, we pride ourselves in having a low ratio of customers to each client liaison officer, which ensures we provide a superior level of support and advice.
Call us free on
0800 954 1263
Get in touch now for a confidential, no obligations chat with of our advisors and let us find the debt solution that's right for you..
- Clear your debts without the need for a loan
- Have one affordable monthly payment
- Reduce demands from your creditors
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