Debt Management Loan

Debt Management Loan

Debt management loan options are for any UK non home owner or tenant, private tenants, council tennants, people living with parents. Debt management loans are neither secured nor unsecured personal loans but they are an alternative option even if you have been declined elsewhere by non homeowner lenders due to bad credit, adverse history, poor rating, defaults, ccjs and arrears. We will give you access to debt management loan options by introducing you to a debt management loan company who can assess your credit and find a manageable solution.

Debt management loan companies are companies that try to help non home owners pay off your debts and therefore eventually re-build your credit rating. The way they work is by contacting all the creditors that you owe money to (normally excluding your mortgage lender) and they negociate with each lender to come to a deal where the interest and the charges that are being added to your credit is frozen.

A debt management loan company will speak with any non home owner to draw up a plan based on your income and expenditure. They agree with you how much in total that you can afford to pay out each month towards your debts. They draw up a financial proposal for your creditors and they negociate a new repayment plan with each of your creditors. You normally pay the debt management company your agreed amount each month and they organise for the money to be distributed (normally pro-rata) between your creditors.

You may have to pay an amount of interest or a charge to the debt management company for their service. This is taken out of your agreed payment each month. Please feel free to ask more details about this when you apply.

If you have been declined an unsecured personal loan or loans by a UK lender, your only option could be to look at debt management. You are under no obligation to proceed with any options you are given.