Am I Suitable for Debt Management?

 

Your first step towards financial solving your debt problems is consulting a financial expert regarding your options. Your financial advisor will be able to tell you if a debt management plan is the right solution for you.

Various factors come in to play when qualifying for debt management.

1. Do you have over £5 000 of unsecured debt?

This debt includes credit and store cards, personal loans and overdrafts. Make sure you keep track of your outstanding balance. You may not think you have as much as £5 000 worth of debt, but penalty charges and interest could have been added. If you have not been making your regular monthly payments on your debt, expect penalty charges and interest on top of your existing debt.

2. Are you insolvent?

Insolvency is different from bankruptcy in that it simply means you cannot afford to repay your debt each month. Making minimum payments every month is not advised, especially with the interest and other charges added on top of your debt. By making only the minimum payments each month, you may be paying off your debt for longer than expected.

3. Do you have a stable income?

Debt management requires you to make monthly payments; therefore you are required to have some sort of regular and stable income. Without a stable income you cannot commit to paying a fixed amount each month to your creditors.

Remember that your eligibility is not purely based on these three criteria, and numerous other factors may also be taken into account. A qualified advisor will be able to help you further.

To find out if you qualify, take our debt test, or alternatively call 0800 0481 775, and one of our qualified advisors will be on hand to help you.