Debt management - how it works

24 November 2008

Gregory Pennington are debt management specialists. Our track record for providing a fast, professional debt management service dates back over 15 years.

When you contact one of our expert debt advisers on 0800 161 3516, you can be sure that you are speaking to someone who knows all about debt management. With just a short phone call, you could send yourself well on the way to becoming debt-free.

Debt management: step-by-step

1. When you first call, you will speak to one of our debt advisers. They will ask you a few questions about your current financial situation, in order to find out how much you earn, how much you owe, and how many people you owe money to.

2. Once your debt adviser has collected all the information, they will have a complete file on your situation. From this file, we can establish how much you can realistically afford to repay to your creditors each month.

3. Your debt adviser will then approach your creditors to negotiate your new, lower repayments. There is a very good chance your creditors will agree to the offer, since it often represents their best chance of getting their money back, and because the terms are designed to be sustainable.

4. Once the debt management plan is approved, you will make a single monthly payment to your creditors, who will distribute the money between your creditors pro rata (as a percentage based on how much is owed to each).

5. Throughout the course of your debt management plan, your debt advisor will be on call should you have any questions or queries. They will reassess your plan every few months to see if your payments still meet your circumstances, and will be able to help you if you think you are having trouble with payments.

6. Once you have finished repaying your debts, the debt management plan will come to an end. Alternatively, you can voluntarily end the agreement at any point – for example if your income rises, or you receive an inheritance.

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