Debt Management Plan Holiday Needed

Written by admin on April 21st, 2011

If something prevented you from paying your debt management plan payments for a short period, you may be able to take a break while you try to get back on top of your finances. This is a frequent question asked regularly by people in a debt management plan as they have never been involved in this situation before and they can find the whole situation quiet daunting.

Can I take a break from my debt management plan?

A debt management plan allows you to manage all your unmanageable unsecured debt repayments affordable once again. This is done by reducing your payments to an amount that you can afford.

However, if an unexpected expense or bill arises, you may find that you can’t afford to pay anything towards your debts for a month or two. In this case, you may be able to take a short break from your debt management payments – as long as your lenders agree.

For the purpose of this article, we’ll assume your debt management plan has been arranged with the help of a debt adviser or debt management company – if you arranged your plan by yourself, you’ll need to contact each of your lenders directly to discuss a payment break.

How To Take A Payment Break From Your Debt Management Plan

If you’re struggling with your finances and you think you need a break from your debt management plan, contact your debt management service or debt adviser as soon as you become aware of this. They will discuss your situation with you, as well as the likely impact a payment break may have on the concessionary arrangements agreed with your lenders. They will require proof of your income and expenses, so it’s helpful to have this ready before making an approach.

The decision to allow a payment break is at the discretion of your finance lenders. If the lenders can see that you are struggling then they are likely to reduce the term for a short period, they may be willing to accept a break in your payments while you try to get your finances back in order.

Long term Payment Breaks In Your Debt Management Plan

If it looks like you’re going to struggle to manage any repayments for the longer term, however – for example, if your essential outgoings rise significantly – your lenders may refuse a payment break, in which case you may need to start looking at alternative options for dealing with your debts, such as bankruptcy.

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