Debt Counselling Debt UK

A debt management plan is an informal agreement between a debtor and their
creditors usually via an intermediary, a Debt Management Company.

• Companies who offer Debt counselling plans to their clients are
effectively working as a middle man service between a debtor and their creditors.

• The client pays the debt management company one agreed and affordable, monthly payment and the debt consolidation company pays all the creditors an agreed amount each month.

A good debt management company will attempt to improve the debtors situation by
negotiating the possible reduction in the overall debt, whilst attempting to freeze
future interest and charges in an attempt to extend the clients repayment period.

Because the creditors realise that the debts are being professionally managed they
will often happily stop any legal proceedings they may be ensuing.
This can not be guaranteed!