Debt Management Plans

A debt management plan could be the most suitable option for an individual if they are not able to meet their contractual repayments.

On deciding if a debt management plan is right for you, it is imperative to assess your income and expenditure. When paying your creditors precedence will be agreed to the following creditors (if applicable):

Mortgage repayments for Homeowners

Rent repayments for Tenants

Council tax Bill and any (current arrears)

Utility bills such as Gas, Water, Electric or oil (if applicable)

Fuel, Car Rental payments

Household expenditure

When drafting the Financial Statement, its paramount that every single area of your budget is taken into consideration, otherwise it may result in you not making the agreed Debt Management Plan monthly repayment, which will of course eventually lead to the failure of your plan.

To arrive at a disposable figure for the purposes of your Debt Management Plan, your total expenditure is subtracted from your total income, with the difference being your disposable figure (income). This figure will then be used to present to your creditors along with the Financial Statement as proof.

Think Financial Solutions will then make contact with your creditors with an offer of repayment (using the disposable figure).

Each Creditor will receive the following: -

Client Signed Authority

Financial Statement

Creditor Summary

Offer of repayment of debt and terms

Once the creditors have recieved the repayment terms, you will then make an agreed payment to us which then we will distribute to each creditor on your behalf.