How Does Debt Management Work?

With us, the debt management process starts when you have been accepted as a new customer by us. We will then collect the following information about your circumstances:

• What you owe (e.g. lenders, the types of credit, your account numbers and balances)
• Your monthly income (e.g. salary, benefits and any other income)
• Your monthly expenditure (e.g. rent, bills, car/transport and household).

Using this information, we will agree with you an affordable amount that you would be able to pay on a monthly basis.

At this point, we contact your creditors to explain your situation and to try reaching a settlement on your behalf. Our Debt Management Plan are based on the following:

• An agreed reduction in your overall debt
• A freeze on interest charges
• Rescheduled payments so that you repay debts over a longer period of time
• An agreement to stop progressing any legal activities.

Once an agreement is reached with your creditors your Debt Management Plan will begin and you will start making payments directly to ClearStart each month rather than your creditors.

Remember that you won't have to make any payments up front and we will make all payments directly to your creditors on your behalf - plus we'll make your last two payments for you! For further information on this offer please read our Terms & Conditions

What to Look Out For

Remember that this is not a legally binding process and individual lenders can change their mind in due course. They can also continue to chase you for payments directly, or even continue to press for legal action or even bankruptcy.

Your payments will be lower in the short term, but interest can continue to build up unless negotiations have been successful. That will mean that paying off the whole amount may take many years. A badly executed Debt Management Plan can even get you further into debt if interest builds up faster than your repayments.

To discuss the best course of action for your individual circumstances call our trained debt advisors now or request a free call back by completing the form to the right of this page.