Do the Guidlines Allow For a Payment Holiday From Your Debt Management Plans?

Do the Guidlines Allow For a Payment Holiday From Your Debt Management Plans?

If something prohibited you from paying your debt management plan payments for a while, you may be able to take a break while you try to get back on top of your finances.

Can I take a break from my debt management plan?

A debt management plan is designed to make your unmanageable personal debt repayments affordable once again. It does this by reducing your monthly payments to a level you can manage.

However, if an unexpected expense or bill arises, you may find that you can’t afford to pay anything towards your debts management plan for a month or two. In this instance, 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 – when you ever 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. Proof of your additional expense is likely to be required, so it’s helpful to have this available.

No matter whether you can take a payment break it is ultimately down to your lenders. If they can see that you really are having debt problems and that it is only temporary, they may well 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 battle 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.

What ever you decide to do always stay in touch with your finance provider – do not under any circumstances ignore them as it with be to your peril. To ignore them is to give them a reason to seek alternative ways for obtaining your goods and property to sell in order to pay your outstanding debt with them.

They can go through the court by pursuing a county court judgment order on you and then a charge on your home if there is no money for them to claim. Your finance providers may decide to send a debt collector to your home to first access your income and chattels ( possessions) and to negotiate a payment structure or they may just send in their bailiffs to ransack your home of possessions to sell at auction to pay off some or all of your debts with them.

So what ever you do always talk to your finance provider if you owe them money and you are struggling, they can sometimes be helpful and sympathetic to your circumstances.

Writer and Publisher Mark Aucamp has been delivering researched articles and Money Saving Ideas and information to for several years. Mark is an expert in providing REMORTGAGE ADVICE and information about DEBT MANAGEMENT PLAN to the readership at http://moneysavingtips.net

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