How does Debt Management Work

Debt Management plans only cover your unsecured debts, such as credit cards, store cards and personal loans amongst others, although we take into consideration any legal accounts and secured loans too.

Creditors do not have to accept any agreements proposed through a debt management plan. By applying to a debt management company like ourselves though, you have proven a willingness to repay your debts in some form and creditors usually respond favourably to that.

As you are not making the repayments originally agreed on your debts, then that may affect your credit rating. However if you have already been turned down for credit or are failing to meet your repayments then your credit rating may already be poor.

With that being said a debt management plan will show that you are making regular repayments and this will have a positive affect on your credit rating over a longer period of time.