Debt Management

What is Debt Management?

Debt management is a debt solution allowing you to consolidate debt in to one affordable payment without further borrowing.

You make one affordable payment to the debt management company, who distributes it between your creditors. The level of the reduced payments depends upon individual circumstances.

How debt management works

The debt management company (us) takes a financial statement from you detailing your income and all necessary outgoings, included your credit repayments. If this shows contractual repayments exceed your disposable income, the debt management company uses this as evidence to your creditors that you can't afford such payment levels.

This works because under the 1974 Consumer Credit Act, unsecured creditors can't ask you for more than your disposable income once reasonable essential living expenses have been taken into account.

Qualifying for a debt management plan

You will be eligible for a debt management plan / programme if you have at least 3 different creditors, can't afford current contractual repayments, but can afford at a minimum of £100 per month towards your debts.

Why Use Abacus Debt Management

Abacus advises on the full range of debt solutions, not just debt management. Therefore you can be assured that we will only recommend debt management if it is the most appropriate solution for you. If your situation is best suited to an IVA, remortgage, debt consolidation loan, debt management plan or even just better budgeting, we will advise accordingly.

Debt Management Case Study

Debt: £19,139, Old Payments: £534, New Payments: £200
Client had separated from her partner and then found out she was pregnant. She was working but was still in her probation period so was not entitled to full maternity pay. Due to the two large changes in her circumstances coupled with the increase of expense of being a single parent with a new born meant that her finances went out of control. She knows this can't continue and this is a realistic option for clearing her debts. A consolidation loan is not an option as she has nothing to secure it against and the debt is too large for an unsecured loan.
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There is a positive way forward, whatever your circumstances.

Abacus has the solutions to put YOU back in control of YOUR finances.

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Debt Management Plans

Debt Management consolidates debt into ONE low affordable payment without further borrowing.

Repay your debts at a level you can afford - no matter their size. If you can afford at least £100 per month towards your debts, a Debt Management Plan may be the most appropriate solution for you, read more...

IVA Debt Solutions

Write off the debt you can't afford with an IVA.

An Individual Voluntary Arrangement (IVA) is a popular debt solution for those owing over £12,000. An IVA allows you to avoid bankruptcy and keep your home. You repay what you can over 60 months, the rest of the original debt is written off, read more...

Repossession Help

Mortgage Arrears? Repossession Order? Bailiffs on their way?

Get help defending a repossession hearing or get an existing repossession order suspended.

You don't need to sell your property to Avoid Repossession & keep your home. Speak to us, free of charge, we'll explain your options. read more»

PPI Reclaims

Have You Payment Protection Insurance On Your Loans ?

Often loans are taken out with payment protection insurance (PPI) included, however many policies are known to have been mis-sold.

If you were mis-sold PPI, we can seek to reclaim your money plus interest, No Win, No Fee. read more»

Trust Deeds

Problem Debts? Live in Scotland? Write Off Up To 90% of Your Debt.

Often referred to as the Scottish IVA, a Trust Deed is a form of voluntary arrangement, available only in Scotland.

A Trust Deed allow you to become debt free in as little as 36 months. read more»

Debt News and Advice

Credit card debt 'has risen by £4 billion in last year' (22nd February 2010)
The nation's total credit card debt has increased by £4 billion between February 2009 and 2010, research has shown.

F&C to help those in debt (18th February 2010)
F&C Asset Management (F&C) has announced it is to help those aged between 35 and 45 resolve their debt and other financial problems by publishing a Financial Life Guide that is formed as a 12-step plan.

Benefit claims 'on the rise' (17th February 2010)
While the unemployment rate in the UK appears to be in decline, the number of those claiming unemployment benefits climbed in January, suggesting that people are still experiencing potential debt and other financial difficulties.

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