Debt Management Costs

A close look the hidden costs behind a debt management plan and an analysis of what you get for your money.

With any debt management plan you will have to pay a small fee to cover administration costs which will usually be the cost of your first monthly payment. A personal debt manager should inform you of the exact cost before you make any commitment to a debt management plan.

Remember: You should never pay an upfront fee when setting up a debt management plan through a "professional" company.

The process

A debt management advisor will help you complete a monthly budget to see exactly how much you can afford to distribute amongst your creditors.

Once a budget has been established your debt management advisor will work with your creditors to arrange a monthly payment. This payment will run until your debts are cleared or your circumstances change.

Do creditors have to accept the agreement?

No, your creditors do not have to accept any offer made by your debt management company. But your monthly budget will be used as evidence to outline exactly what you can afford to pay.

Due to the excellent processes in place at Debt Response and the frequency with which we deal with creditors we have an excellent relationship with many of them and almost always get our proposals accepted.

Before making a decision take a look at the alternatives to a debt management plan.

What if my circumstances change?

It is important that you contact your debt management company if there are any changes to your circumstances that will have an effect on what you can afford to pay your creditors.

Your debt management advisor may be able to renegotiate your monthly payment with your creditors in this situation.

Any information you provide will be kept completely confidential.