Debt management plans and lender negotiation

A lot of people find it hard to talk to their creditors anytime they get into trouble; particularly if there have been disputes previously.

That’s exactly where we come in.

Some people are best-advised to enter into an informal debt management plan. While lenders aren’t obligated to accept our DMP partners affordable repayment offers, they will have the reassurance that, because you’re on a DMP, you’ll get support to pay off your debt dependably, instead of committing to an amount you can’t sustain.

How your proposal is negotiated:

  • First we’ll work with you to identify how much cash you have available after all priority debts such as your rent/mortgage, food, travel and additional costs are removed.
  • Then we’ll look at what you have readily available left over to pay the regular monthly expense of any type of loans, overdraft accounts and credit and store cards and any other ‘unsecured’ personal debts (so called because they aren’t secured against your house).
  • The debt management provider will use this information to attempt to demonstrate that scaling down payments (and halting interest and charges) is the most effective solution for all of the parties. They’ll ask your creditors to agree to this
  • Creditors will respond. They’ll have been offered their fair share of what you can afford to pay. While it cannot be guaranteed, most major creditor organizations are willing to accept sensible and fair debt management plans and also very often make concessions to their borrowers that are using them.