How does a debt management plan work?

A debt management plan offers an opportunity to engage in an informal arrangement with a debt management company such as Money Tailor, and hopefully come up with a suitable debt solution.

By acting as an intermediary between the debtor and the creditor, a debt management company like ours can help you make sense of the complexities of personal debt by providing a personal service of debt assistance, tailored to an individual’s exact requirements.

As well as being able to cast an experienced eye over the debt information you provide to us, we will also request an immediate cessation of any interest and charges, and although creditors are not obliged to agree to this, in many cases they do.

This new repayment proposal is executed as a financial statement to the creditors outlining precisely what each of them will receive on a monthly debt repayment basis, accompanied by an explanation of your income and expenditure.

All you have to do is set up a standing order, which we distribute to your creditors on a ‘pro-rata’, or priority basis after deduction of our monthly fee.

Learn more about our fees (PDF download)

Is a debt management plan for me?

It could well be. Debt management solutions are suitable for people unable to qualify for IVAs, loans or other debt plans in two distinct ways.

• Firstly, you can be confident that you will only be asked to make affordable monthly repayments for your debts.
• And secondly you achieve peace of mind in knowing a debt problem can be addressed by a single point of contact with our debt management team, only a phone call away.

We find one of the most attractive features of this type of informal debt arrangement is its function as a temporary ‘stop gap’, giving you breathing space to sort out your finances, perhaps with a view to settling in full further down the track. It can buy you time and produce a much wanted debt solution.

Health Warnings

• Conditions Apply, are Subject to Status and Fees are payable.
• The total amount to be repaid may increase if debts are repaid over a longer period.
• Your ability to obtain credit will be affected in the short term and may be affected in the medium to long term.
• Telephone calls may be recorded for training and quality purposes.

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