A Debt Management Plan is a repayment scheme to your creditors. Like any financial plan there are sometimes disadvantages which are unavoidable.
All Clear Finance can help with potential alternatives if you feel as though a Debt Management Plan is not the right solution for you, call today on 0800 048 1762.
Debt Management Disadvantages -
- It is not a legally binding agreement - meaning that creditors are not obliged to stop your interest and charges, or accept your monthly repayment.
- You will have a poor credit rating, as you are breaking the original terms of your agreement.
- Although you monthly payment will be more affordable to you, it will take you longer to pay back the full amount.
- Debt Management may not be a suitable option if you have high levels of unsecured debt. Please see our page on IVAs for more information.
All Clear Finance is a trading style of Ask Finance Ltd (Registered in England and Wales. Company number 4229724), a wholly owned company of the Harrington Brooks Group Ltd. Ask Finance Ltd is licensed under the 1974 Consumer Credit Act to carry on the business of consumer credit, consumer brokerage, debt adjusting and debt counselling. Consumer Credit License No: 507130. Ask Finance Ltd is authorised and regulated by the Financial Services Authority - FSA No: 300490 - for the provision of mortgage advice and arranging insurance.