Debt Management is an informal agreement between you and the unsecured creditors you owe money to. A Debt Management Programme looks to reduce the amount you pay on a weekly / monthly basis, towards your debt, to enable you to pay your priority debts and living expenses comfortably. Usually, only one payment is made, per week or month, which is then distributed between all the different creditors based on how much is owed to whom. If you are using a company, like GW, to act on your behalf, this is all done for you.
GW continually review your circumstances to ensure you get the best advice on how to get out of debt at the earliest opportunity – this could be by re-structuring your Debt Management Programme or recommending alternative solutions you may be suitable for – both in house and by other organisations / providers.
To give you an idea of how Debt Management might work for you, the fees and timescales, see our below example. We would be happy to provide you with something more specific and tailored to your personal circumstances. Just complete our online enquiry form and we will call you back, or call us on either 08081 292 010 or 0161 476 9500.
Before Debt Management:
Debt Level: £11,267.65
Number of Creditors: 6
Disposable Income: £165 per month
Month 1 – 4:
DMP payment would be £165.00 from which 50% (£82.50) would be distributed between creditors and 50% (£82.50) would be retained towards set-up fees. A total of £330 would be distributed and £330 used to complete the set-up fees.
Month 5 onwards:
DMP payment would be £165.00 from which £39.95 would be deducted to cover the on-going monthly management of the DMP. This would mean £125.05 would be distributed between the 6 creditors.
Total Repayable: £15,113.46
Total Fee’s: £3845.62
*Assuming the interest and charges are frozen on first request, the balances remained the same as the initial estimation and the payments were made, on time, each month
*On the assumption that interest and charges are frozen
This example is formulated using GW ‘average client’ data from September – November 2020 new clients.