Bridgewood Debt Solutions

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Debt Management

If suitable, a Debt Managment Plan may be able to help you to regain control of your finances, lower your monthly payments and freeze interest and charges

Find out if a DMP is a suitable solution for your debts »

Debt Management Plans

How does a Debt Management Plan work

A Debt Management Plan is the process of restructuring your unsecured debt repayments to clear your debts as fast as possible, whilst still leaving you enough money to cover living expenses and priority debts (such as a mortgage)

When you contact us for debt help we will first perform a detailed income and expenditure review to establish what debts you have and what you can realistically afford to pay towards them each month.

Whilst we do not provide debt management plans in house, if it is the most appropriate solution for you, we will provide further information and advice on how and where you can get one.


Who may be eligible for a Debt Management Plan?

You could be eligible for a Debt Management Plan in the following circumstances:

  • You owe more than £5,000 of debts (either yourself or jointly with your partner)
  • You have two or more creditors
  • You can pay at least £100 each month towards your debts (in some cases less)
  • You can provide proof of your income and the debts you have

How much will I pay?

Your monthly payment

The amount you pay each month is based solely on what you can realistically afford. When you contract us, one of our Senior Financial Consultants will work through your current financial situation with you to identify what you can realistically pay each month towards your debts.

We use approved guidelines to calculate what you need in order to pay your household bills and other living expenses – this way we are able assess your situation based on what you can genuinely afford.


Pros and cons of a Debt Management Plan

Debt Management Pros

  • A common practice that is widely understood by creditors
  • We prepare the plan for you, based on what you can realistically afford to pay toward your debts each month
  • We negotiate with creditors on your behalf meaning its more likely that offers will be accepted, and interest and charges frozen
  • Your payments may be able to be altered if your circumstances change
  • You make only a single monthly payment each month, and we distribute this to your creditors within 5 working days
  • Your plan ensures you have enough to pay your Priority Debts such as your mortgage or rent, Council Tax and utility bills
  • There is no public record of your debt management plan, meaning your friends and family do not need to find out if you do not wish them to

Debt Management Cons

  • Creditors do not have to accept our proposal, or freeze any interest and charges
  • You remain liable for all of your debts until they are fully repaid
  • A DMP is not legally binding meaning creditors are free to take enforcement action against you if they wish. Example this includes them contacting you directly for payment, or applying for a CCJ against you.
  • Creditors have no obligation to accept lower monthly payments if your circumstances change and you can no longer afford to keep up the plan
  • Your credit file may be marked with default notices
  • Your ability to obtain further credit may be affected

When will my debts be repaid?

The length of time it will take to fully repay your debts will depend on how much debt you have and what you can afford towards it pay each month. A typical Debt Management Plan will last for 5 years or more.

If we recommend a Debt Management Plan as being a suitable solution to your debts we will give you an estimate of how long the plan will last, based on the amount you are committing to repay each month. It should however be noted that in the event that your creditors do not agree to freeze interest and charges, repaying your debts over a longer period is likely increase the total amount to be repaid

Find your debt solution today!

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