What is debt management?
On a debt management plan we renegotiate your monthly unsecured debt payments down to a level you can afford and distribute the agreed amounts to each of your lenders.
How can we help?
We make sure debt management is right for you
Talk to our debt experts today to see if a debt management plan could be right for you.
We negotiate a repayment plan with your lenders
We'll agree monthly payments based on what you can afford and try to negotiate a freeze in interest and charges.
We'll take care of everything
Make one affordable monthly payment to us and your Personal Finance Manager takes care of unsecured lender payments and all paperwork to help you towards a debt free future.
Debt Management FAQs
Why would my lenders accept my offer?
Your lenders understand that you have more chance of repaying your unsecured debt in full if you repay it in regular amounts that you can afford. Although they aren't obliged to accept the reduced offer they'll appreciate that your debt management plan has been worked out by experts, based on your financial situation - so the repayment amount is the most you can reasonably afford each month.
Is debt management like a loan?
No. Debt management is designed to make your existing debt more affordable without borrowing more.
What do I get on my debt management plan?
The short answer is simple, manageable finances. You'll have specialists renegotiating your unsecured debt payments direct with your lenders. They'll also ask for a freeze in interest and charges so you can start to reduce your debt as soon as possible.
Once agreed, you need only make one lower monthly payment to us and we'll distribute all the payments to your lenders. We'll take care of all their communications throughout your time with us and any renegotiations should your circumstances change.
You'll also get one-to-one help from your Personal Finance Manager: they'll oversee all aspects of your account and you can call them at any time to discuss your plan or any other aspect of your finances.
You'll also receive regular updates, quarterly statements and regular reviews. You'll always know exactly where you stand and can begin to enjoy life without the worry of unpaid bills or threatening letters.
When will my debt management plan finish?
The length of time it takes to complete your debt management plan varies according to how much you owe to your unsecured debts and how much you can afford to pay back each month. As debt management reduces the amount you pay back it will take longer to pay off what you owe – and could increase the total amount you have to pay. However, it is an adaptable solution so if your circumstances change you can increase your monthly payments at any time, which will cut the amount of time your programme lasts.
How much does debt management cost?
To start a debt management plan you'll need to pay an initial fee and then a monthly management fee.
- The initial fee will be the same as your first monthly payment subject to a maximum of £475 (note: this will be taken from your first payment, not added to it – you'll only ever pay what you can afford)
- The Monthly fee will be 17.5% of your monthly payment subject to a minimum of £34.50 and a maximum of £90.00 (note: this is taken from your regular monthly payment, not added to it)
Read more about our fees.
Can debt management stop interest and charges?
Our debt management negotiators will show that your situation requires a freeze in interest and charges to help you repay what you owe and (although they don't have to) your lenders will usually agree to this.
Note that if they don't agree to freeze interest and charges, the longer repayment period could mean you pay more in the long run.
How do I know if debt management is right for me?
Talk to our experts and get a realistic view on your finances. When you call they'll discuss your financial circumstances and get an accurate idea of the best solution for you. They may find that a more frugal approach to your spending habits will be sufficient to get your finances back on track – but if your situation is more serious they'll explain all the options available.
Making reduced payments towards your debts will affect your credit rating, so you should be sure it's the right solution for you before you go ahead. And besides, your lenders will only agree to it if it's clear you can't afford your existing payments.
What does my Personal Finance Manager do?
As well as all the practical requirements of your debt management plan such as distributing payments and dealing with your lenders, your Personal Finance Manager also acts as your own personal financial assistant: Because they know all the details of your finances they'll be able to advise you on any money issues or simply provide reassurance and support throughout your debt management plan.
What if I want to cancel my debt management plan?
Because debt management isn't a formal arrangement you can cancel at any time, simply by informing us. You won't be charged if you cancel within the initial fourteen day cooling off period and will be entitled to a full refund of the initial fee.
Even if you cancel afterwards, simply give us two weeks' notice so we can inform your lenders – although you won't be entitled to a refund of anything you'd paid to date.
Debt management case study
Here is an example of how a debt management plan could make your unsecured debt repayments more manageable.
New monthly repayment is based on personal circumstances and will vary from case to case
Advice you can trust
We are founder members of DEMSA – The Debt Managers Standards association. Click here to take a look at the DEMSA code of conduct.
Each month we help 1000s of people get out of debt. We're proud of our service and the awards we've received.
Fees & key info
Read more about the fees involved with each of the solutions we provide.
Download the Insolvency Service guide to dealing with creditors.
About Gregory Pennington
Gregory Pennington has helped over 200,000 people since their beginnings in 1993. As one of the UK's largest and longest established debt management companies we've gained an enviable reputation amongst lenders and clients alike for our ethical approach to debt solutions.