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Debt Management

A Debt Management Plan is an informal arrangement between a person in debt and their creditors.

The Debt Management Plan enables the person to reduce repayments to their debts to a more affordable level when financial difficulties arise.

Whilst this will inevitably increase the repayment term of the debt, it does offer respite from unaffordable debt repayments which will be of great value to those whose debt problem is short term.

When administered correctly, Debt Management Plans can be extremely helpful in dealing with a debt problem, however, it is important to be aware of the potential pitfalls.

Creditors are not obliged to accept the repayments being offered through the Debt Management Plan. They are within their rights, if they wish, to take recovery action for the outstanding debt which could, in the extreme, lead to bankruptcy. This can have a significant impact on you if you are a homeowner.

Debt Management

Furthermore, there are no guarantees that creditors will freeze interest and stop making late payment charges just because you have requested through the Debt Management Plan.

Advantage Of A Debt Management Plan

Disadvantages Of A Debt Management Plan

AFA Insolvency Ltd are not able to offer a Debt Management as a financial solution, However you can get free and impartial advice from Money Helper.

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