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.
Reduce monthly repayments without affecting your credit rating
Taking out a consolidation loan over a longer period will often result in reducing your monthly repayments – with no effect on your credit rating. But it’s important to remember that making lower payments over a longer period could mean paying back more in the long term.
Take advantage of lower interest rates
Reduce the rate of interest you pay on high-APR store cards, credit cards, loans, and overdrafts by switching them all into a lower-APR consolidation loan.
Turn all your debts into one manageable monthly payment
Get a simpler way to pay that could also reduce the amount you pay! By combining your debts into one new loan, you could reduce the interest you are paying, not to mention stopping the hassle of dealing with multiple creditors.
How can GW help you?
- A friendly and non-judgemental Personal Finance Advisor will look to complete a detailed telephone assessment of your personal financial circumstances – we call it a ‘Personal Consultation’
- The Personal Finance Advisor will assess what solutions are available and suitable and together you will discuss your options and agree the best route to addressing your finances.
- If Debt Management appears to be the most suitable debt solution for your current circumstances then your Personal Finance Advisor would discuss how it would work for your circumstances and then send you a copy of all discussed for you to read, following the telephone call. (If other solutions appear to be most suitable these will be discussed with you.)
- After reviewing paperwork and taking your time in making a decision, if you chose to use GW then you would need to return certain documents.
- Your Personal Finance Advisor would check your paperwork and make sure Debt Management remains the better-suited solution before contacting your creditors.
- GW then contacts the creditors we would be negotiating with on your behalf, collecting outstanding balances and requests they give you 30 days breathing space from contact whilst a solution is established.
- Once you have made a payment towards your Debt Management Programme our Administration Team take over and distribute payments, minus our fees. For more information on our fee structure please see our Terms and Conditions and the Case Study for an example.
- You will receive a ‘Welcome Call’ and be introduced to your Personal Finance Manager who will look after you for the duration of your Debt Management Programme.
- A statement of your finances is provided to each of your creditors together with an offer of payment and a request that interest and charges are frozen.
- GW take care of all on-going letter and telephone correspondence for you, and distribute each payment you make to your creditors, minus an on-going administration fee to cover the cost of our services.
- Where you have threats of, or legal action already pending from your unsecured creditors, we will represent you and aim to stop this from moving further.
- 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.