What if my circumstances change?

How is a Debt Management Plan affected if my circumstances change?

One of big advantages of a Debt Management Plan is that it is very flexible, and can react very quickly to a change in your financial circumstances. Clearly it is always better to stick to an agreed payment figure every month, but life has a habit of putting obstacles in the way which can make this difficult on occasions.

As an integral part of understanding your own situation we will discuss with you how much income is received into the household after tax etc, and what essential monthly costs you have to cover to keep the roof over your head and food on the table (these are known as your Priority Debts which must be covered without fail). From this discussion we can get a clear understanding of how much you can then reasonably afford to pay towards your unsecured debts.

Despite reaching this figure, this isn’t a perfect world, and we have found that often there is an unforeseen expense that needs to be covered – car repairs, new kit for the children at school, boiler breakdown – all have to be covered at some point.

Where your situation changes or you have to cover that unexpected bill, you need to let us know so that we can explain the position to your creditors and agree whatever changes we need to put in place. Creditors are not deliberately ogres (though sometimes you might think they are!); they are human beings just like you, but naturally need to have the confidence that you are doing your best to meet your obligations. Making them aware of any changes early removes a lot of the potential barriers, and they will generally be supportive.

Call us on 08448 247 260 or ask us any Debt Management questions using the form below: