What is a Debt Management Plan?
A Debt Management Plan is a service offered by Equitiadebt and others to reduce the amount of money you owe to your creditors, allowing you to make just one affordable payment each month to pay off your debts over a manageable time period.
How does it work?
After a discussion with you, one of our financial experts will contact each of your creditors to negotiate:
- A reduction on your monthly payments
- A freeze on interest and charges
- Agreement to withdraw legal proceedings
- A longer term for repayment
Based upon their discussion with you, your Equitiadebt representative will present you with the new figures we have negotiated for you, together with a single figure which is your monthly payment to us. This will include all payments to your creditors and our administration charge. If you wish to proceed, we will complete the paperwork on your behalf to set up the agreement and ensure that your new repayments commence as quickly as possible.
What will happen?
One of our caring experts at Equitiadebt will meet with you to have a no-obligation, confidential chat at a time and place convenient to you. We will visit you at home or you are welcome to come to our office if you feel more comfortable. Once we have examined your full current financial situation; including fixed monthly payments such as mortgage or rent, Council Tax and utilities and all payments due to creditors, we will have a clearer idea of where things have gone wrong and, most importantly, be able to advise you how to put them right.
First, our advisor will calculate exactly what you must spend each month on your utilities etc and discuss with you a realistic, affordable amount to offer your creditors, whilst leaving you with enough money to live on. With your consent, your Cobra Finance representative will contact each of your creditors to negotiate:
- A reduction on your monthly payments
- A freeze on interest and charges
- Agreement to withdraw legal proceedings
- A longer term for repayment
Our reputation and expertise affords us a high success rate in this and we are confident that we can achieve a significant reduction in the overall amount you pay each month, the term and interest rate at which you are expected to repay.
Debt Management Fee Breakdown
Administration Fee: £300
(This can be made payable over the first 3 months as we understand that it can be difficult to source and we do not want you to increase your debt. The creditors will get a reduced contribution until the administration fee has been paid.)
Monthly Management Fee: £6 per debt
Minimum Monthly Management Fee: £30
Example
Disposable Income £195.54
Unsecured Loan 1 = £6
Unsecured Loan 2 = £6
Credit Card 1 = £6
Credit Card 2 = £6
Other Debt = £6
Equitiadebt monthly management fee = £30
Amount distributed to creditors: £165.54
Note: Our management fees are not calculated on a percentage of your disposable income therefore if you are able to increase the amount during the plan our fee will not increase and all extra will be distributed to your creditors pro rata.
Why choose Equitiadebt?
Equitiadebt is a small company with a core team of dedicated, caring advisors who will provide a personal, sympathetic and non-judgemental service. We understand that the current recession has hit everybody hard but we believe that our expertise can significantly alleviate your financial concerns, allowing you to regain control of your income and expenditure. Once we have enabled you to take control and reduce the amount of money you owe to your current creditors, we will advise you how to avoid the same situation happening again.
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