What can I do if my debt management plan fails?
By Mr Bankruptcy
3rd February 2020
If you have already agreed a debt management plan but are now struggling to make the agreed payments, or feel it no long suits your situation, then it’s time to consider your options.
Is your debt management plan right for you?
When you entered into the debt management plan it may have been, or seemed, the best solution at the time. These plans are a good option if your debt is likely to be repaid over a short period, debts are unsecured loans and you have extra money each month to pay towards your debts. However, you may need to reconsider your current arrangements if:
- Your income has reduced
- Secured debts may have increased so less able to pay debts covered by the plan
- Unexpected costs mean you cannot afford the repayments
- You may have taken on more debts
Can you alter a debt management plan?
Debt management plans are not legally binding contracts so you can discuss reviewing the payment terms with the provider. However, their continuation needs the support of your creditors so changes to an agreed plan should be done only after proper consideration.
Take time to review your budget to ensure you are working towards a realistic repayment solution and be aware that cancelling your plan may incur a charge and any fees paid may not be refunded.
Are there alternatives to your debt management plan?
If your debt management plan is no longer working it’s important to act straight away, especially if you’re starting to miss payments. It is in no one’s interest for the repayment plan to fail, so as long as you are talking to the provider it may be possible to renegotiate your monthly payments under the debt management plan.
If, instead, you’re considering cancelling your debt management plan you will need to ensure you have an alternative way to repay debts. There are several ways to manage debts and some solutions may help reduce the amount of debt to be repaid.
It’s advisable to seek expert advice regarding debt management to understand the requirements and implications of each option so that you can find the one that’s right for your circumstances and become debt free as quickly as possible.
James Rosa Associates
James Rosa associates is a firm of debt advisors and debt adjustors. With a supportive, friendly and non-judgemental approach, we offer a full range of advice and professional services to individuals and business owners/directors facing unmanageable debt or involved in civil or commercial disputes.
Our services include:
● Insolvency support
● Negotiated settlements
● Personal assisted bankruptcy
● Mediation
We are authorised and regulated by the Financial Conduct Authority (FRN665061) to work with clients to produce bespoke solutions to fit their specific circumstances.
Find out if you qualify for a free consultation
If you want to deal with an unmanageable debt, or bring a dispute to a swift and cost-effective resolution, contact James Rosa Associates, ring 0845 6807217 or email enquiries@jamesrosa.co.uk to find out whether you qualify for a free consultation.
Please be advised that all views expressed in these posts are those of the author and not of James Rosa Associates ltd.