Will my Lenders Accept a Debt Management Proposal?

September 8, 2014

Luke-Notley small (Custom)When entering into a Debt Management Plan, you are effectively striking a deal with your lenders (creditors) with the intention of decreasing your total repayment amount whilst still paying back the totality of your debts over time. This means there needs to be a little negotiation until a repayment amount which suits all parties is agreed upon.

Creditors are not required by law to accept the terms of a Debt Management Plan, but many will do so if/when they understand how it will benefit them. Many creditors understand that a Debt Management Plan could increase the likelihood they will receive the totality of the debt they are owed – albeit it at a slightly slower rate.

A Debt Management Plan can also benefit a creditor as they won’t need to directly chase the debtor anymore, leaving the legwork to a dedicated debt management advisor.

At InControl, our experienced advisors take responsibility for your part in the negotiations – corresponding directly with your creditors so you don’t have to. With more than nine years’ experience in debt and credit management, our expert advisors have worked with many of the UK’s biggest and most prominent creditors.

This experience allows advisors to develop repayment methods within the financial restraints of a debtor but which also satisfies the creditors. At InControl, our advisors will meet with you to determine your financial situation fully to accurately determine a level of repayment you can afford, and then present a new repayment scheme to the creditors.

Even after a Debt Management Plan is agreed upon by all parties, our advisors will revisit each case every six months to determine whether the agreement is still suited to all parties or if situations have changed. If your financial situation has changed, the advisor will approach your creditors and appeal for a restructuring of the repayments accordingly.

At InControl, we will only advise Debt Management Plans to debtors we believe will benefit from a restructured repayment scheme. Additionally, our advisors will appeal to creditors on your behalf to freeze any interest rates and additional charges.

For more information about a Debt Management Plan, visit our dedicated page or call our expert team on 0800 072 6623.