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, including your credit repayments. If this shows contractual repayments exceed your disposable income, the debt management company uses this as evidence to your creditors to show that you can't afford the current payment levels.

This becomes relevant to your situation as 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: £21,325, Old Payments: £450, New Payments: £300
Client lost his job and was out of work for several months. He began living on credit and the debt grew to £21,325. The client started a new job, but must serve a 3 month probation period. He has a value of debt that makes him eligible for an IVA. However, the fact that he had just started a new job and has recently had a period without work means this option is not currently available to him. Creditors need to be confident that IVA payments will be made at the agreed rate each and every month for 5 years. A Debt Management programme is more flexible in this respect and suits this clients situation.
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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. We can help you decide if a DMP is right for your situation and provide honest advice on the risks involved, read more...

IVA Debt Solutions

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

An Individual Voluntary Arrangement (IVA) is a popular debt solution for those owing over £10,000. An IVA with our sister company ClearDebt 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. We can advise you on the IVA process and explain the positive and negative aspects of this debt solution, 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

Unexpected bills can 'tip people over the edge' (23rd May 2012)
The tough economic climate and high unemployment rate means that many debt-laden consumers are on a financial precipice.

Saving for future at an all-time low (22nd May 2012)
The number of people saving enough money for a comfortable retirement is drastically low, according to pension provider Scottish Widows.

Young people's credit ratings hit by parental help (21st May 2012)
Young people's credit ratings are being adversely affected by their parents every time they receive help with their payments and credit agreements.

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