The Debt Management Services Toolkit

Debt management services could provide the solution for householders with credit card and personal loan payments that are spiralling out of control.

The first step in taking control of debt is looking at someone's financial status.

  • Key factors include:
  • How much money is owed
  • The credit rating of the person owing the money
  • Whether the the person in debt owns their own home or has other assets that can be easily sold
  • How creditors intend to recover their money, like registering court judgements or petitioning for bankruptcy

 A debt management services provider will put together a strategy for managing someone's debts.

 Debt Management Services 

Some of the debt management services options include:

 

 Agreeing an informal debt management plan to reschedule the debt over a reasonable time with a set monthly payment that is lower than regular repayment

 Agreeing a formal debt management plan – an individual voluntary arrangement (IVA) – that pays all or part of any money owed. IVA's involve debt professionals and probably some fees as well.

Administration orders are for anyone owing up to £5,000 who can afford to make regular monthly payments.

Bankruptcy – when someone's assets are taken over to pay their debts.

Debt relief orders – similar to bankruptcy, but only for someone that does not own a home with debts up to £15,000

Some debt management strategies involve consulting an insolvency professional, attending court and some costs.

Someone already declared bankrupt can consider a fast-track voluntary arrangement (FTVA), which is a method of coming out of bankruptcy early. To take advantage of an FTVA, someone in bankruptcy has to prove they can meet certain consitions to the Official Receiver.

Deciding on the right debt strategy needs careful thought and consideration of all the options available.

A good debt management services provider will have a selection of options in their toolkit and should give advice on the most appropriate solution tailored to someone's personal financial circumstances.
 

 

Client Testimonials
  • We were put in touch with Pathfinder by a friend of ours when a failed business created alot of personal debt of which we had no way of being able to continue with the payments . It seemed like a jungle with no way out . Dawn Speakman of Pathfinder...
  • After drowning in debt and not knowing which way to turn I was put in touch with Pathfinder DM, through their help and guidance I am now slowly getting this under control and myself back on track, the staff at Pathfinder have been professional...
  • In early 2009, I read an article in the Salford Advertiser, for Pathfinder, a debt management company. At the time I had run up debts of 50K on various credit cards, mainly through changing jobs, along with a reduction in salary.I arranged a meeting...