Debt Management Plans

What is a Debt Reduction Programme?

It's a way of reducing your payments to your creditors to a single, affordable monthly amount. Once we have reached an agreement with your creditors all interest and charges will be stopped and the creditors will stop chasing you for payments. A Debt Reduction Programme is a flexible arrangement which can be altered if your circumstances change.

Who can benefit from a Debt Reduction Programme?

• Anyone who is genuinely struggling to repay their unsecured creditors is eligible for a Debt Reduction programme.
• Employed people or unemployed (you must have a source of income)
• Homeowners or tenants.
• Young or old.
• Anyone who wants to try and repay a reasonable amount to their creditors.

How does a Debt Reduction Programme work? 

1. We'll carry out a financial review for you and assess your situation.
2. We'll then work out a realistic payment proposal for you.
3. Once you become a client of Best Solution, we'll act on your behalf with your creditors.
4. When we receive your first payment we'll contact each of your creditors and send them all the relevant paperwork and an interim payment.
5. We will prepare a Statement of Affairs for you which will show all the details of your financial situation (this document is the basis for any arrangement.) Another interim payment will go to each creditor.
6. A draft copy of the Statement of Affairs will be sent to you for checking and signing.
7. We'll forward a signed copy of the Statement of Affairs to each creditor along with a formal offer of payment. They'll also get another interim payment.
8. We'll negotiate with the creditors to get the arrangements accepted.
9. We'll manage the debt for you on an ongoing basis.
10. If you're able to raise funds, we'll attempt to negotiate Full & Final Settlements with your creditors on an individual basis (This is a way of writing off a large portion of your debts)
11. If applicable we will advise you and make you fully aware of any fees payable.

12. “Unlike “free” or "charitable" debt management companies, we are not funded by the credit industry (i.e. the companies you may owe money to). We are funded by you, the client. The key advantage is that we are on your side when negotiating with your creditors and this can dramatically reduce the amount you pay to settle your debt. You will also enjoy lower monthly payments and a better quality of life. This is because we do not have to worry about pleasing your creditors to keep afloat.”

The main advantages of a Debt Reduction program are;

1.  It’s far more flexible than some other arrangements, therefore if your circumstances change, the plan can be renegotiated at any time.

2.  The payments under a debt management arrangement are often considerably lower than other alternatives such as an IVA.

3.  A debt management plan is less damaging to your credit record than bankruptcy.

4.  Debt management costs are often lower than solutions such as an IVA.

5.  If your circumstances change for the worse, you are far less likely to be forced into bankruptcy than through a formal arrangement such as an IVA.

6.  It may be possible to negotiate one-off full and final settlement payments to your creditors to discharge the debt in full and save you a considerable amount of money.

The main disadvantages are;

1.  The creditors are not legally obliged to accept the payment proposals although most will as long as the payment level is realistic and your circumstances are proven to be genuine.

For more information about our Debt Reduction Programs please contact us.