Debt Management
A debt management plan allows you to manage your finances in an informal but professionally drafted agreement with your creditors by making one single affordable monthly payment.
121 Debt Solutions Ltd acts as an agent between you and your creditors (the people to whom you owe money). We will contact your creditors to arrange a repayment plan and once we have done this, you only pay us your affordable monthly payment, which we will distribute amongst your creditors in accordance with the plan. Please ensure that you have included all of your debts in the plan and we will ensure that all non-priority creditors are treated equally. As long as you make a commitment to make the payments every month it is likely that your creditors will accept the plan.
We always ask creditors to respond sympathetically to your circumstances by freezing or reducing interest in order that your monthly payments will help to reduce the capital balance.*
The benefits of a debt management plan are:
- One payment each month makes money management easier.
- Someone else manages your debts, taking away your stress.
- We will negotiate with your creditors to try and freeze or reduce your interest payments.
- You can stop the plan at any time without any penalties.
* Not all creditors will agree to this and this could lead to you repaying your debts over a longer period and consequently to an increase in the overall debt.